VanEck Research Director: New Solana Proposal Expected to Reduce SOL's Annual Sell-Off by $677 Million to $1.1 Billion

On 5 March, Matthew Sigel, Director of Digital Asset Research at VanEck, published an analysis of how the combined effect of Solana's SIMD 096 and SIMD 0228 proposals is expected to reduce annual selling pressure on SOL by between $677m and $1.1bn, noting that, while SIMD 096 increases tax-related selling pressure by removing the 50% priority fee destruction mechanism, the impact of SIMD 0228 is expected to completely offset this. Sigel noted that while SIMD 096 increased tax-related selling pressure by eliminating the 50 per cent priority fee destruction mechanism, the impact of SIMD 0228 is expected to fully offset this negative effect.

As previously announced, Solana's SIMD 0228 proposal is open for discussion and a community vote is expected in approximately 10 days. The proposal aims to shift the SOL token offering to a market-driven model, with a 50% target pledge rate to enhance network security and decentralisation.