Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Solana Validators to Receive A Massive 100% of Priority Fees After Recent Governance Proposal

Solana validators will see an increase in their rewards as a recent governance proposal has been passed, granting them 100% of priority fees from transactions on the network.

The proposal received a favorable vote of 77% late Monday, according to data from the Solana governance system.

Validators play a crucial role in blockchain networks by running software to validate transactions and ensure network security.

What Are Priority Fees in Solana?


In Solana, priority fees are additional charges that users can pay to expedite the processing of their transactions.

Under the previous system, half of the fees from priority transactions were eliminated, while the other half went to validators.

However, this setup led to concerns about validators engaging in “side deals” with transaction submitters to receive more SOL tokens, as highlighted by the proposal creator known as tao-stones on the Solana governance forum.

By allocating all priority fees to validators, the aim is to incentivize them to prioritize the security and smooth operation of the network.

This change is part of Solana Improvement Document number 96 (SIMD-0096) and has been implemented through a feature called “Reward full priority fee to validators #34731.”

Following the announcement of the successful proposal, the SOL token has experienced a 1.6% increase in the past 24 hours, trading at $166 during Asian afternoon hours on Tuesday, as reported by CoinGecko.

The SIMD-0096 proposal might negatively impact the Solana Network by making SOL more inflationary, noted Laine, a Solana staking validator.

“The reality is that the current priority fee mechanism provides for side deals which create opacity and prevent free, transparent and equitable access to block space for all network participants,” she wrote in a recent post on X.

Despite the yearly issuance increase of 4.6%, Laine pointed out that priority fees were absent in May 2023, suggesting that the effective inflation rate would revert to approximately 9.9% annually.

SIMD-0096 net change to inflation is just 4.6%

Many dissatisfied comments happening relating to the SIMD-0096 proposal about validators enriching themselves and removing burn which harms deflationary mechanism.

Our role here is primarily to help facilitate the vote, regardless…

— Laine stakewiz.com (@laine_sa_) May 10, 2024

Solana ETFs Could Be Next to Hit Market


Crypto investor and trader Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States.

On a recent episode of CNBC’s ‘Fast Money’, Kelly, who also serves as the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle.”

However, Nate Geraci, president of The ETF Store, expressed skepticism, stating that a spot Solana ETF might not materialize until a Solana futures product is listed on a major exchange or until Congress establishes a clear regulatory framework for cryptocurrencies beyond Bitcoin and Ethereum.

On May 23, the SEC officially approved 19b-4 applications from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise for issuing spot Ether ETFs.

The post Solana Validators to Receive A Massive 100% of Priority Fees After Recent Governance Proposal appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Oracleofomahasays.com