Solana upgrades will strengthen network but squeeze validators — VanEck

The network’s planned upgrades are sparking debate amid concerns over validators’ revenues.

Solana’s planned protocol upgrades are important for the network’s long-term health but could deal a blow to validators’ earnings, according to asset manager VanEck. 

In March, Solana’s validators will vote on two proposed upgrades — known as Solana Improvement Documents (SIMDs) — to the blockchain protocol designed to ensure rewards for stakers and adjust the inflation rate for the network’s native SOL (SOL) token. 

Both proposals have generated “significant controversy” because they stand to slash validator revenues by as much as 95%, potentially imperiling smaller operators, VanEck digital asset research head Matthew Sigel said in a March 4 X post. 

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