Recommended article: "Deep Dive Into SIMD-0228: The Deep Game Behind Deep Understanding". The following is a summary of the core content of Solana's major transformation 👇 The SIMD-0228 proposal is a significant change in the Solana ecosystem, attempting to shift from a fixed "money printing" plan to a market driven dynamic model by adjusting the inflation mechanism. The following is a deep analysis of its core content and impact: Proposal essence: From fixed rules to market mechanisms. Current mechanism: Solana's inflation rate is fixed, gradually decreasing from 8% to 4.78%, with a final target of 1.5%, like a pre-set "printing money" timetable. New proposal: Introduce a dynamic formula that links the inflation rate to the pledge rate - a higher pledge rate (many people lock up their SOL positions) results in a lower inflation rate; If the pledge rate is low (fewer people lock up their positions), the inflation rate will be high. This is like letting the market decide how much money to print on its own, rather than being artificially regulated. Meaning: The evolution from simple and crude rules to more flexible market mechanisms aims to make inflation more closely aligned with the actual needs of the internet. -Divergent positions of stakeholders Supporters: Large investors (such as Multicoin Capital): They hold a large amount of SOL, which reduces inflation, minimizes token dilution, protects their investment value, and may even push up SOL prices. Non collateralized holders: Those who do not lock their positions also hope for less inflation to avoid diluting their token holdings. Large validators: These "network maintainers" have technological advantages and can earn money through MEV (extra income from transaction sorting), without relying too much on inflation rewards. Opponents: Small and medium-sized validators: They rely on inflation rewards to make a living, and a decrease in inflation may make them unable to earn money or even exit the network. Pledger: The person who locks up SOL may find that the returns have decreased and may feel that it is not cost-effective. Game theory: This is not only a technical adjustment, but also a redistribution of interests, with clear opposition between big and small players. -Expected impact: The pledge rate has decreased due to changes in the internet and ecology: it may drop from the current 65.7% to 45-55%, as rewards have decreased and the motivation to lock up positions has decreased. Verification exit: About 3-4% (40-55) of small verifiers may leave due to not making any money. Income structure transformation: validators shift from relying on inflation incentives to earning money through MEVs, similar to changing from fixed salaries to "performance bonuses". DeFi Growth: After the reduction of SOL in lock up, it is expected that 5-10% of SOL will flow into DeFi (decentralized finance), stimulating ecological prosperity. -Main benefits: Blocking the "leaky bucket" and optimizing resources to reduce the "leaky bucket effect": Currently, nearly 1 billion US dollars flow out of the ecosystem through taxes and exchanges every year, and the new mechanism can retain about 783 million US dollars. Release capital: More SOLs are liberated from lock up and enter DeFi, activating financial activities. Reduce dilution: print less money to protect the value of holders. Market optimization: Let the market determine resource allocation instead of human planning. -Potential risks: New problems and challenges: Negative feedback loop: If the staking rate is too low (such as falling to 30%), inflation will rise, leading to price drops and more validators exiting, forming a vicious cycle. Reduced diversity of validators: The exit of small validators may make the network more centralized, with large validators dominating. Increased dependence on MEV: validators overly rely on MEV, which may bring centralization risks, such as a few people controlling transaction ranking. Market stability to be verified: Whether this new mechanism is reliable under extreme market conditions has not been tested yet. -Proposal significance: Solana's maturity marks a significant technological advancement from fixed rules to dynamic adjustment. Economic aspect: shifting from "printing more money to ensure security" to "minimum necessary payment", more efficient and mature. At the governance level, the proposal sparked community discussions and demonstrated Solana's improved governance capabilities.