Howdy!
It’s not big news for today to be the lead story. A Kardashian-related member is in a social media frenzy to promote her Solana Memecoin.
It’s a bull market for cryptos — and for interesting things to write about in newsletters.
Solana’s Validators Target Side Deals
Validators in Solana voted on Monday to approve a proposal which would have sent 100% of the priority fee to them, as opposed previously, when they were only given half.
The rationale for such a move was partly that these priority fees — which users can pay to try getting their transactions confirmed more quickly — need to be paid in full to avoid “side deals” The blocks are created outside the official network block creation process.
In the proposal, a hypothetical is given: If someone pays a priority charge and a validator only makes 50% on that fee, why would they not take a bonus via a separate deal which was 75% larger but they kept 100% of? This way both the validator as well as the user gets a better deal.
Mert Mumtaz is the CEO of Helius The host of Lightspeed, who is also the creator and producer of the podcast said that he supported the proposed name. Solana Improvement Document (SIMD)-0096.
Mumtaz told me the side deals are a real problem — though by definition they’re difficult to quantify.
The proposal was met with opposition because of a lack of evidence to show how prevalent side deals really are. It turns out that there is no evidence to support the claim. Dune dashboard tracking collusion.
Author of the proposal said that paying validators 100% of their priority fees won’t stop side deals, but that making incentives clearer is worthwhile.
The Solana protocol is expected to increase inflationary pressures on the Solana Network, as it burns less SOL. solana’s price.
According to one validator, the number of SOLs issued would rise by 4.6% when 100% of validators’ fees are paid.
One forum member suggested that validators could manipulate the price of priority tickets by increasing their priority fees.
My first reaction was, to be honest, more like: What? Solana votes on governance issues?
Some major blockchains are structured to allow software updates, while others are not. Ethereum’s EIPs for instance are implemented when developers and the community have reached a consensus.
The voting power of validators was determined by the amount staked SOL that they supervise. Around two dozen SIMDs have been listed. Solana Foundation’s GitHub. The network is still working on its governance.
As we’ve seen with SIMD-0096 and voting, the power of Solana will be determined by who has the vote, what they vote for, and who is in charge.
— Jack Kubinec
Zero In
The future will bring a few more rewards for Solana Validators.
Priority fees on Solana are additional — and optional — fees users can pay in order to have their transactions approved more quickly on the network. The blockchain itself is not new to this type of activity. BitcoinUsers can choose to pay higher fees to attract more miners to their transactions. These higher payments are collected by miners when they uncover a block.
On Solana these fees, however are split at the time of block creation. The validator receives half, and the burnt half gets the remaining half. Priority fees can be paid in addition to base network charges.
Thanks to approval from SIMD-0096Validators will receive 100% of the priority fee. The proposal received 77% of the vote.
The folks at Blockworks ResearchOver time, a person’s personality will change.
As an optional charge, it’s unclear how much money will flow into the pockets of validators. It depends on what happens on the network.
Either way, the governance approval represents a shift in Solana’s foundational economics — we’ll be watching to see how things shape up over time.
— Michael McSweeney
The Pulse
Caitlyn Jenner’s The Olympic champion and mother of Kendall and Kylie, posted a video reassuring her fans that she hadn’t been hack, took down a token ad after backlash and accused someone involved in $JENNER Fraudulently taking advantage of her.
And $JENNER’s trading volume has reached tens and tens millions.
Social media was as you would expect it to be on a weekend off, but X users in particular captured the mood pretty well.
— Jack Kubinec
One Good DM
A message to Mert Mumtaz, The CEO of Helius:
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