The Solana ecosystem recently voted on SIMD-0228, a governance proposal to shift the network’s token emission model from a fixed inflation schedule to a dynamic, market-based system tied to staking participation. The goal was to reduce Solana’s inflation rate, potentially by as much as 80%, bringing it down from the current 4.66% to below 1% annually under certain staking conditions. This change was intended to curb unnecessary token issuance, reduce sell pressure, and enhance the network’s long-term economic sustainability.

Despite significant community engagement, the proposal did not achieve the required supermajority of 66.67% approval, garnering only 61.39% of the votes in favor. The vote saw an unprecedented turnout, with 74% of the staked SOL supply participating across 910 validators, marking it as one of the largest governance votes in cryptocurrency history by both participant count and market cap involved.

Key Reasons for Rejection

Over 60% of validators with stakes of 500,000 SOL or less voted against the proposal, primarily due to concerns over profitability. Reducing staking rewards could make it financially unviable for smaller validators to operate, especially those charging little to no commission. This raised fears of reduced network decentralization, as smaller validators might exit, leaving the network more centralized among larger players. Conversely, validators with larger stakes overwhelmingly supported the proposal, as they are less affected by reduced staking rewards due to their scale and profitability margins.

Solana’s current inflation model remains in place, starting at 8% annually and decreasing by 15% each year until it stabilizes at 1.5%. This continues to add new SOL tokens to circulation, potentially exerting sell pressure on the token’s price, especially during periods of low network activity when fewer transaction fees are burned. Critics of the proposal argued that maintaining higher inflation is necessary to incentivize staking, which is crucial for network security under Solana’s Proof of Stake (PoS) model. The rejection reflects a preference among some stakeholders for preserving decentralization over aggressive inflation reduction.

Despite the proposal’s failure, the high voter turnout was widely celebrated as a testament to Solana’s robust governance process. The extensive public debate and participation underscored the community’s engagement and commitment to the network’s future, even amidst differing interests. The debate around SIMD-0228 revealed broader tensions within the Solana ecosystem, particularly regarding the balance between economic incentives, network security, and decentralization.

Proponents, including notable figures like Solana co-founder Anatoly Yakovenko and Multicoin Capital’s Tushar Jain, argued that the current fixed inflation model leads to unnecessary value leakage—estimated at $1–2 billion annually—and that a dynamic model would align Solana’s monetary policy with its economic activity, potentially boosting SOL’s value by reducing dilution. Critics, including Solana Foundation President Lily Liu, cautioned that the proposal was “too half-baked” and could introduce instability, particularly for institutional investors who value predictable yields.

While SIMD-0228 failed, a related proposal, SIMD-0123, passed with nearly 75% approval. This proposal enhances transparency in reward distribution by allowing validators to split a portion of their earnings with stakeholders via an on-chain system, reflecting a community preference for adjusting validator incentives over slashing inflation. The rejection of SIMD-0228 does not mark the end of discussions on Solana’s tokenomics. The significant engagement in the vote suggests that the community remains open to future proposals, potentially with adjustments to address the concerns of smaller validators.

The Solana ecosystem may explore alternative mechanisms, such as revisiting transaction fee burning (altered by the earlier SIMD-0096 update) or introducing hybrid models that balance inflation reduction with validator sustainability. For now, Solana’s inflation rate continues to add new tokens to circulation, and the network’s economic health will depend on factors like transaction activity, DeFi usage, and broader market conditions. The failure of SIMD-0228 highlights the challenges of achieving consensus in decentralized governance, particularly when proposals have uneven impacts across stakeholders, but it also underscores Solana’s capacity for robust community-driven decision-making.

This week is thrilling in the crypto market. Hedera (HBAR) rose by 10% amid talks of an ETF, grabbing attention everywhere. Meanwhile, Chainlink (LINK) struggles near the key $10 price, sparking fears of deeper drops ahead. But BlockDAG (BDAG) is the big winner, successfully passing a Halborn security audit. Raising over $202.8 million with a massive 2380% price spike, BlockDAG is overshadowing both Hedera and Chainlink as the standout crypto of the moment.

Hedera (HBAR) Price Jumps 10% on Grayscale ETF Buzz!

Hedera (HBAR) climbed 10% as ETF Talks Heat Up Hedera (HBAR) gained a solid 10%, reaching $0.2487. The boost came from growing rumors about a possible Grayscale Hedera ETF. Many believe this ETF would attract big institutional funds to Hedera. Currently, the SEC is reviewing the ETF application for NASDAQ listing, pushing Hedera’s market value beyond $10.42 billion.

Hedera’s price rise is especially notable from February 25, gaining 28% due to ETF optimism. Approval would likely boost Hedera further by allowing easier market access for large buyers without holding the cryptocurrency directly.

Chainlink (LINK) Nears Danger Zone

LINK risks Falling to $10 Chainlink (LINK) continues its downward path, now trading under $15 and nearing the crucial $10 mark. Previously, LINK traded over $30 but has steadily declined, creating concern as it fails to hold key support levels. Experts are watching closely at the $12-$13 range, historically essential for preventing larger losses.

If selling pressure grows, Chainlink might drop toward the critical $10 price. Yet, the technical indicators suggest LINK is heavily oversold, meaning a short-term bounce is possible. Chainlink’s direction ultimately depends on the broader market mood.

BlockDAG’s Halborn Audit Success Sparks Massive $202.8M Presale

BlockDAG achieved a crucial goal recently by successfully passing the Halborn security audit. This achievement makes it one of crypto’s most secure blockchain projects. Security issues are common in crypto, and proving BlockDAG’s strength through independent audits boosts trust significantly.

With verified infrastructure, BlockDAG offers strong protection for user data and assets. The ongoing CertiK audit further shows BlockDAG’s dedication to safety and reliability. Compared to Hedera and Chainlink, BlockDAG stands apart clearly, emphasizing its stability and robust security. This reliability makes BlockDAG appealing to long-term supporters, giving peace of mind about asset safety.

BlockDAG’s firm commitment to security has powered its presale success directly. The presale has impressively raised over $202.8 million, selling more than 18.7 billion BDAG coins. Starting at $0.001, its value soared to $0.0248 in batch 27, marking a remarkable 2380% rise. Moreover, BlockDAG miners have achieved sales of over $6.5 million, with a total of 16,000 mining devices already sold.

The presale target of $600 million is now close, and each new batch pushes prices upward. Buyers rush in quickly to secure lower prices before they rise again. BlockDAG’s rapid growth and expanding popularity show huge promise and strong future potential.

Final Verdicts

Hedera’s recent 10% rise has everyone focused on possible ETF approval, which could significantly elevate its market standing. Chainlink’s continued struggle around the $10 mark leaves traders worried, though a short-term recovery might still happen.

Yet, BlockDAG remains the most exciting crypto project right now. Achieving crucial security audits and delivering outstanding presale results, BlockDAG raised over $202.8 million, demonstrating unmatched momentum. Those who delay could miss a major opportunity.

Presale: https://purchase.blockdag.network

Website: https://blockdag.network

Telegram: https://t.me/blockDAGnetworkOfficial

Discord: https://discord.gg/Q7BxghMVyu

Pudgy Penguins has partnered with Helio and Shopify to enable payments using its native cryptocurrency, $PENGU, marking a significant step in expanding the utility of its ecosystem token. This integration allows $PENGU to be used as a payment method not only on the official Pudgy Penguins store but also across thousands of Shopify stores that utilize Shopify Pay, facilitated by Helio, a Web3 payments platform. This move enhances the real-world utility of $PENGU, which was launched on the Solana blockchain in December 2024, by integrating it into a major e-commerce platform, thereby bridging the gap between Web3 and mainstream commerce.

PENGU is the official token of the Pudgy Penguins ecosystem, a popular NFT (non-fungible token) project that initially launched on the Ethereum blockchain. The token was introduced to enhance community engagement and expand the project’s reach, particularly by launching on the Solana blockchain, with plans to extend to Ethereum and Abstract, an Ethereum layer-2 scaling network. Pudgy Penguins has grown into a significant brand, known for its NFT collection of 8,888 unique cartoon penguins, as well as physical merchandise like toys sold in major retailers such as Walmart and Target.

The total supply of PENGU tokens is 88.88 billion, with a significant portion allocated to the Pudgy Penguins community, including holders of Pudgy Penguins NFTs, Lil Pudgys, and Pudgy Rods. Other allocations include liquidity pools, team members, and outreach to other Web3 communities. The token aims to serve as a symbol of community, memes, and positive engagement, though its specific utility within the ecosystem is still evolving. Currently, it acts primarily as a community engagement tool, with potential future uses in governance, staking, or transactions within the Pudgy Penguins marketplace.

The partnership leverages Solana Pay, enabling fast and low-cost transactions, which is a strategic choice given Solana’s high throughput and scalability. This development aligns with Pudgy Penguins’ broader goal of expanding its community and making its brand accessible beyond the crypto space, as evidenced by its significant social media presence and retail partnerships with major stores like Walmart and Target for its physical merchandise. From a critical perspective, this integration is a notable advancement for Web3 adoption in e-commerce, potentially reducing transaction fees and increasing accessibility for crypto payments.

However, it’s worth questioning the scalability and long-term sustainability of such initiatives. While the partnership opens up new opportunities for $PENGU holders, the actual adoption by Shopify merchants and consumers remains to be seen, as crypto payments are still a niche in mainstream commerce. Additionally, the volatility of $PENGU’s value could pose challenges for both merchants and consumers in using it as a stable payment method, a common issue with cryptocurrencies not pegged to fiat currencies.

This partnership also raises questions about the broader implications for NFT projects issuing tokens. While Pudgy Penguins is enhancing $PENGU’s utility, many NFT-related tokens have historically been speculative, with limited real-world use cases. The success of this initiative will depend on execution, user adoption, and the ability to maintain $PENGU’s value and relevance in a competitive market.

Furthermore, regulatory considerations, such as compliance with financial regulations for crypto payments, could impact the rollout and acceptance of $PENGU on Shopify stores, especially in jurisdictions with stringent crypto laws. The partnership between Pudgy Penguins, Helio, and Shopify to enable $PENGU payments is a promising development for the project’s ecosystem, enhancing its token’s utility and pushing Web3 payments into mainstream e-commerce.