Solana Validators Will Receive 100% of Priority Fees Following Governance Vote

Solana validators will now receive 100% of priority fees from transactions following a recent governance proposal that was approved with 77% of the vote.

Validators are essential for verifying transactions and maintaining network security in blockchain networks.

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Previously, half of the priority fees were eliminated and the other half went to validators, leading to concerns about side deals between validators and transaction submitters for additional SOL tokens.

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The new change aims to incentivize validators to ensure network security and efficient operation by granting them all priority fees.

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This adjustment is detailed in Solana Improvement Document number 96 (SIMD-0096).

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Following the proposal's approval, the SOL token saw a 1.6% increase in value, trading at $166.

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However, Laine, a Solana staking validator, noted that this change could increase the inflation rate of SOL.

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Despite an annual issuance increase of 4.6%, the absence of priority fees in May 2023 suggests an effective inflation rate of around 9.9%.

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Additionally, Brian Kelly, a crypto investor, suggested that Solana could be the next cryptocurrency to have a spot ETF in the U.S.,

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although skepticism remains about this happening without a futures product or clearer regulatory framework.

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