Uncategorized

Solana Inflation Reform Effort Fails on Dramatic Final Voting Day

Published

6 месяцев ago

14 марта, 2025

admin

Solana’s high staking rewards will live to inflate SOL another day.

A contentious effort to reform the blockchain network’s generous inflation regime flopped on Thursday after supporters of SIMD-0228 failed to garner the supermajority they needed to implement the major economic change.

The surprise result delivered a blow to the Solana power brokers who rallied to replace Solana’s static inflation mechanics with a market-based system. Their proposal likely would have cut the network’s 4.7% annual staking rewards down to 1% or less.

In a contest that pitted Solana’s influential leaders and investors – who claim the network’s high staking rewards are bad for SOL’s price – against small-time operators who feared the effects of a big cut to their revenue, the opposition rallied hardest on Thursday, as late-voting validators’ ballots broke heavily in favor of «no.»

That was enough to scuttle the first major attempt at lowering Solana’s uncommonly high staking emissions rate. Among the most valuable programmable blockchains by market cap, Solana issues comparatively large sums of new tokens to its validators, the computer operations that power proof-of-stake blockchains.

Much like election night in the U.S., SIMD-0228’s weeklong political circus featured betting, ranting, data threads, chart-reading wonkery, endless social media debates and more than a bit of heated name-calling. One validator put their votes up for sale. Many others split their tickets.

It crescendoed with a dramatic rush of ballots cast by many of Solana’s 1300 validators. In the end, the opposition won an exceptionally high turnout election that laid bare the divide between big and small validators.

In the end, SIMD-0228 became the network’s first economic reform to fail at the polls.

Little stakers

Solana validators are only called upon to vote when the network is grappling with a major economic change, said Jonny, the operator of the Solana Compass validator.

SIMD-0228 is the third ever such vote to appear in records by StakingFacilities.com (the current proposal went up for consideration with an unrelated SIMD that passed). Its controversies sparked the highest turnout vote in the network’s history.

Over 66% of validators cast votes, according to a dashboard from Flipside Crypto. Together they wielded 75% of the network’s voting power, a remarkable share given voting in this decentralized system is voluntary.

Of participating validators with 500,000 SOL or less, over 60% voted against SIMD-0228, per a Dune dashboard. Larger validators saw the exact opposite: of validators with more than 500,000 SOL, 60% voted in favor.

The lopsided results suggest opponents’ warnings of economic ruin struck a nerve with small-time validators.

Big Stakes

Proponents of SIMD-0228 believe it would have solved Solana’s inflation problem, which they claim drags down SOL’s price. Their thinking goes like this: fewer tokens means fewer sellers, and fewer in the hands of tax collectors, too.

In place of the network’s static 4.7% SOL emissions that validators receive annually, they called for a dynamic system that adjusts to nudge staking trends up or down

Opponents, meanwhile, called the proposal reckless and rushed. Some told CoinDesk they suspected its co-author, the influential investment company Multicoin Capital, had written it to favor its own interests. Others publicly warned SIMD-0228 would disrupt elements of Solana’s DeFi economy, or turn off institutional investors who they claimed were attracted to SOL’s native yield.

Some doomsayers even claimed SIMD-0228 would chip away at Solana’s decentralization by forcing hundreds of validators with small SOL stakes offline, though others dispute the size of the blow.

Solana validators make money based on how much SOL they’ve staked, either from their own coffers or from tokens delegated to them by others. Those with smaller stakes are more acutely exposed to changes in emissions than those with bigger operators.

«Many people feel like SIMD-0228 is not the best proposal to address inflation on Solana,» said SolBlaze, a validator operator.

«SIMD-0228 is a significant economic change, and changes on this scale deserve more time to discuss, analyze data, and iterate with feedback from different sectors of the ecosystem.»

Reformists aren’t going to give up the fight, said Max Resnick, one of the proposal’s co-authors and an economic researcher at Anza Labs.

«We are gonna chat with the no’s and come to a compromise,» he said.

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

1 час ago

16 сентября, 2025

admin

Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Keyrock, founded in Brussels, Belgium and best known for its work in market making, options and OTC trading, said it will fold Turing Capital’s investment strategies and Luxembourg fund management structure into its wider platform. The division will be led by Turing Capital co-founder Jorge Schnura, who joins Keyrock’s executive committee as president of the unit.

The company said the expansion will allow it to provide services across the full lifecycle of digital assets, from liquidity provision to long-term investment strategies. «In the near future, all assets will live onchain,» Schnura said, noting that the merger positions the group to capture opportunities as traditional financial products migrate to blockchain rails.

Keyrock has also applied for regulatory approval under the EU’s crypto framework MiCA through a filing with Liechtenstein’s financial regulator. If approved, the firm plans to offer portfolio management and advisory services, aiming to compete directly with traditional asset managers as well as crypto-native players.

«Today’s launch sets the stage for our longer-term ambition: bringing asset management on-chain in a way that truly meets institutional standards,» Keyrock CSO Juan David Mendieta said in a statement.

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

1 час ago

16 сентября, 2025

admin

Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Business

Gemini Shares Slide 6%, Extending Post-IPO Slump to 24%

Published

1 час ago

16 сентября, 2025

admin

Gemini Space Station (GEMI), the crypto exchange founded by Cameron and Tyler Winklevoss, has seen its shares tumble by more than 20% since listing on the Nasdaq last Friday.

The stock is down around 6% on Tuesday, trading at $30.42, and has dropped nearly 24% over the past week. The sharp decline follows an initial surge after the company raised $425 million in its IPO, pricing shares at $28 and valuing the firm at $3.3 billion before trading began.

On its first day, GEMI spiked to $45.89 before closing at $32 — a 14% premium to its offer price. But since hitting that high, shares have plunged more than 34%, erasing most of the early enthusiasm from public market investors.

The broader crypto equity market has remained more stable. Coinbase (COIN), the largest U.S. crypto exchange, is flat over the past week. Robinhood (HOOD), which derives part of its revenue from crypto, is down 3%. Token issuer Circle (CRCL), on the other hand, is up 13% over the same period.

Part of the pressure on Gemini’s stock may stem from its financials. The company posted a $283 million net loss in the first half of 2025, following a $159 million loss in all of 2024. Despite raising fresh capital, the numbers suggest the business is still far from turning a profit.

Compass Point analyst Ed Engel noted that GEMI is currently trading at 26 times its annualized first-half revenue. That multiple — often used to gauge whether a stock is expensive — means investors are paying 26 dollars for every dollar the company is expected to generate in sales this year. For a loss-making company in a volatile sector, that’s a steep price, and could be fueling investor skepticism.