Solana developer proposes $3bn cut to blockchain’s staking rewards

Core Viewpoint - A proposal has been made to accelerate the reduction of staking rewards on the Solana blockchain from -15% per year to -30%, aiming to limit the creation of new SOL tokens and potentially prevent nearly $3 billion worth of new tokens from entering circulation [1] Group 1: Staking Rewards and Token Inflation - The current staking rewards for Solana are around 6% annually, which is considered excessively high compared to Ethereum's 3% [3] - The proposed change aims to address high token inflation, which increases sell pressure as stakers may need to sell rewards to cover taxes [2] - Previous attempts to reduce staking rewards have been contentious, with a March proposal failing to pass despite receiving over 61% support [4] Group 2: Governance and Economic Sustainability - The proposal seeks to promote a more focused governance process to avoid past divisive discussions regarding inflation schedule modifications [5] - There is concern that reducing staking rewards could negatively impact the decentralization of Solana by making it economically unfeasible for some validators to operate [7] - Other blockchains, including Ethereum, Celestia, and Near, are also exploring ways to reduce their token inflation this year [6]