Solana’s network upgrades could reduce the profit validator

Vaneck’s head of digital property research, Matthew Sigel, warned that the upcoming Solana Network upgrades could significantly influence the profit of the validator, while raising centralization risk.

Sigel pointed out three major proposals – Simd 096, Simd 0123 and Simd 0228 – in the post to KS at 4. Marta. These proposals are looking to improve Solanes (Salt) Economic framework, but have the potential to reduce validator income by up to 95%.

Solana was a SMID 096, realized 12. February, redirected 100% of the priority valuable fees, removing the previous system that burned half of these fees. Payments for exposure increased as a result, but they were deterred for trade agreements from validators and traders.

Simd 0123, which is currently for voting, further redirect revenues from node operators by looking for valirized to pay priority fees in Stockers.

The symd 0228, the slowest proposal is scheduled for vote at 6. March, would modify the solane inflation rate based on the participation of the role. The network is a year inflation The rate would be reduced by 4.7% to 0.93% if the levels that were stood at 63%. This would record the dilution of tokens, but also reduced the putting of the award, much to the lack of validators.

The validators were mostly different about the high operating costs needed to run nodes. They include mandatory voting fees of 1.1 fol every day (about $ 58,000 per year) and hardware expenses of about $ 6,000 per year. Since only 458 Solan’s 1,323 Validators have a sufficient amount of turning stake earnSmaller operators risk forcing.

Lowering of voting fees proposed several community members as a way to alleviate the financial stress. Despite the controversy, Sigel argued that the reduction of inflation would use SOL long-term lowering of sales pressure and supporting the value of tokens.

Solana’s network activity remains strong. With $ 109 billion in February, Blockchain surpassed Etherum for the fifth consecutive month, showing his dominance in a decentralized volume of exchange, according to the distribution data.

Current plans, however, can be acted on nodes that is unauthorized for small validations, which could result in even more centralization.