Unchained Solana Insiders Wanted to Reduce Inflation, but It Failed. Here’s What the Proposal’s Author Thinks - Ep. 800
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Mar 14, 2025 
Tushar Jain, co-founder and managing partner at Multicoin Capital and co-author of the SIMD-228 proposal, reflects on the recent governance vote regarding Solana's inflation rate. He discusses why the proposal was essential for Solana's health, the surprising opposition from some validators, and how the governance process revealed key challenges. Jain also shares insights into a smaller successful proposal on fee sharing and hints at the possibility of revising SIMD-228 for another attempt.
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SIMD-228 Rationale
- Inflation in Proof-of-Stake systems incentivizes staking, which is crucial for network security.
- SIMD-228 proposed tying inflation to staking participation, optimizing the cost of security.
Retail vs. Wall Street
- Laura Shin points out that retail investors, not Wall Street, have historically led crypto adoption.
- She questions if attracting "Wall Street types" is the right approach for Solana.
ETP Yields and Volatility
- Tushar Jain doesn't want to rely on investors' lack of knowledge; people get smarter over time.
- Solana ETPs in Europe offer negative real yields and high volatility, unattractive to sophisticated investors.