SIMD-0096’s implementation on Solana’s mainnet is expected to take several months. As per the proposal, a feature gate will be used to manage this transition.
By Anisha Pandey
Edited by Julia Sakovich
Updated
3 mins read
Solana validators have voted in favor of the Solana Improvement Documents (SIMD)-0096 proposal to bolster network security and improve incentives for validators. The proposal, which garnered 77% support, will redirect all transaction priority fees to the validators for the blocks, a departure from the previous model where fees were split equally between burning and rewarding validators.
SIMD-0096 aims to better align validator incentives with network security by ensuring they receive full priority fees. This eliminates potential side deals between block producers and transaction submitters. As the original proposal stated:
“This ensures that validators are appropriately incentivized to prioritize network security and efficiency, rather than being incentivized to engage in potentially detrimental side deals.”
The proposal received overwhelming support, with 77% of validators voting in favor during an on-chain vote. Notably, the vote, which concluded at the end of epoch 620, recorded 51.17% stake participation.
Priority fees in Solana are optional fees users can add to their transactions to increase the chances of their transactions being processed promptly. In other words, these fees help ensure that a user’s transaction is placed at the front of the execution ordering queue.
Previously, Solana’s model for handling these fees involved burning 50% of the priority fees and distributing the remaining 50% to validators. This discrepancy leads to validators prioritizing side deals over the network’s overall health and security, thus creating an imbalance.
SIMD-0096 proposes a significant shift by stopping the burning of priority fees altogether while maintaining the 50% burn of base (or normal) transaction fees. By adjusting the priority fee structure to reward validators with 100% of the collected fees, SIMD-0096 aims to rectify the misalignment of incentives.
Interestingly, the proposal also introduces a potential drawback. By directing the entire priority fee to the validators’ accounts, there is a risk that block leaders might artificially inflate the reported priority fees in their blocks. In the previous model, burning a portion of the priority fees served as a deterrent to such behavior.
SIMD-0096’s implementation on Solana’s mainnet is expected to take several months. As per the proposal, a feature gate will be used to manage this transition. While transaction submitters will not experience any changes in their payment structures, the updated software will allocate a larger portion of fees to validators. The proposal explains:
“A feature gate is essential to ensure a smooth transition for all validators to the new functionality at the epoch boundary, thereby maintaining consensus.”
Meanwhile, Solana (SOL) has shown positive market performance. As of now, SOL is trading around $167, marking a 1% increase in the last 24 hours. Additionally, the trading volume has seen a rise of approximately 7.5% within the same period, standing robust at $2.9 billion.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
