Solana validators recently made a significant change by voting to allocate 100% of priority fees to themselves, ending the previous 50/50 split between burning fees and rewarding validators. The proposal, known as SIMD-0096, passed with 77% approval, aiming to address flaws in the system and align incentives for network security and efficiency.
The new allocation seeks to prevent potential side deals between transaction submitters and block producers that could compromise network security. Several validators supported the change, including Everstake, Jito, Helius, and more, while others like Step Finance and Triton opposed it.
Bug in the System
Critics, like Hanko Baggins from Bandito Stake, raised concerns about the removal of the burn mechanism, which helps manage Solana’s inflation rate. However, Solana co-founder Anatoly Yakovenko described the priority fee burn as a bug and emphasized the need for improvement in block reward distribution.
Delayed Implementation
Although the vote has passed, the activation of SIMD-0096 may take time due to system limitations. This delay allows for further development of proposals like SIMD-0123, aiming to streamline block reward distribution, and SIMD-0109, proposing a native tipping mechanism.
The decision highlights the diverse perspectives within the Solana community and sets the stage for ongoing discussions about the network’s future. This move comes as Solana gains increasing interest and achieves high trading volumes in the cryptocurrency market.
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