VanEck Executive: SIMD 096 and SIMD 0228 Synergies Expected to Reduce SOL Annual Inflation Pressure by $677 Million to $1.1 Billion

BlockBeats News, March 5: VanEck's Director of Digital Asset Research, Matthew Sigel, stated, "The combined effect of SIMD 096 and SIMD 0228 is estimated to reduce SOL's annual sell pressure by $677 million to $1.1 billion. While SIMD 096 increases tax-related selling pressure by eliminating the 50% preferential fee burning mechanism, SIMD 0228 is expected to fully offset this impact."

Previously reported, Solana's SIMD 0228 proposal is now open, aiming to transition SOL issuance to a market-driven model. A vote is expected to take place in approximately 10 days. The proposal sets a 50% target staking ratio to enhance network security and decentralization. If over 50% of SOL is staked, the issuance will decrease, thereby suppressing further staking by lowering the yield; if less than 50% of SOL is staked, the issuance will increase to raise the yield and incentivize staking. The minimum inflation rate will be 0%, while the maximum inflation rate will be determined based on Solana's current issuance curve.