Greed

Long

Solana

<div class="finbold">
 <p class="paragraph">Solana (SOL) validators voted in favor of Solana Improvement Document (SIMD)-0096, a proposal to allocate all transaction priority fees to validators for the blocks they produce instead of the previous 50/50 split between burning fees and rewarding validators.</p>
 <p class="paragraph">This proposal aims to improve incentives around how validators receive priority fees, enhancing network security and efficiency.&nbsp;</p>
 <p class="paragraph">Priority fees are a way to ensure a user’s transaction is placed at the front of the execution ordering queue. Essentially, these are optional fees that a user can add to their transaction to increase inclusion guarantee.</p>
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 <p class="paragraph">The approval of SIMD-0096, which received 77% approval from major validators such as Everstake, Jito, Helius, and Stakehaus, aims to optimize incentives within the validator system and eliminate potential side deals between block producers and transaction submitters.</p>
 <p class="paragraph">However, it faced opposition from others, including Step Finance, Triton, and Solana Compass. Proponents argue that the <a rel="noopener noreferrer nofollow" title="change" href="https://thebittimes.com/tag/change.html">change</a> will reduce the potential for detrimental side deals and better align incentives for validators.&nbsp;</p>
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    <p lang="en" dir="ltr">With that in mind, the burn mechanism has the potential to have a serious impact on the 1.5% yearly inflation that's baked into Solana's tokenomics. <br><br>Long term, this will be a good thing for Solana. <br><br>I think we will be on the right side of history with this vote.</p>— HANKO (@hankobaggins) May 25, 2024
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 <p class="paragraph">Critics, such as Hanko Baggins from Bandito Stake, raised concerns about removing the burn mechanism, which helps manage Solana’s annual inflation rate.</p>
 <h2 class="wp-block-heading" id="h-market-reaction-and-price-prediction">Market reaction and price prediction</h2>
 <p class="paragraph">Although the activation of SIMD-0096 may take several months due to the current Solana Mainnet or upcoming upgrade not supporting it yet, the decision has already sparked interest in Solana.</p>
 <p class="paragraph">At press time, Solana is trading at $171.52. Following the proposal’s approval, Solana’s <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> saw a modest increase, with a 3% gain in 24 hours. According to <em>DeFi Llama</em>, users spent $1.87 million on Solana fees in the past 24 hours.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="508" src="https://cdn.thebittimes.com/images/2024/05/28/7e7a56dfd55c10d2298125a60cfdd8ab.webp" alt="" class="wp-image-179123" srcset="https://cdn.thebittimes.com/images/2024/05/28/7e7a56dfd55c10d2298125a60cfdd8ab.webp 1024w, https://cdn.thebittimes.com/images/2024/05/28/7e7a56dfd55c10d2298125a60cfdd8ab.webp 300w, https://cdn.thebittimes.com/images/2024/05/28/7e7a56dfd55c10d2298125a60cfdd8ab.webp 768w, https://cdn.thebittimes.com/images/2024/05/28/7e7a56dfd55c10d2298125a60cfdd8ab.webp 1282w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>SOL 6-months price prediction. Source: CoinCodex</em>
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 <p class="paragraph">According to <em>Coincodex</em>, Solana’s <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> is predicted to rise by 42.34% to reach $237.43 by November 24, 2024. As per the technical indicators, the current sentiment is bullish, while the Fear &amp; Greed Index is showing greed. Solana recorded a 9.81% <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> volatility over the last 30 days.</p>
 <p class="paragraph">Prominent analysts are also optimistic about Solana’s future. <em>Trader Tardigrade </em>identified bullish trends in Solana’s technical patterns, suggesting the <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> could soar to $1,000, fueled by the growth of SocialFi applications like SolChat.&nbsp;</p>
 <p class="paragraph"><em>Daniel Yan</em> from<em> Matrixport</em> draws parallels between Solana and Ethereum (ETH), suggesting that Solana could experience gains similar to Ethereum’s following the approval of Bitcoin ETFs.</p>
 <p class="paragraph">Yan emphasizes Solana’s unique market position, higher profit potential, and the anticipated introduction of Solana and XRP ETFs by 2025, which could further drive institutional interest and adoption.</p>
 <p class="paragraph">The approval of SIMD-0096 marks a pivotal moment for Solana, aiming to enhance <a rel="noopener noreferrer nofollow" title="network" href="https://thebittimes.com/tag/network.html">network</a> efficiency and security.</p>
 <p class="paragraph">While concerns about the removal of the burn mechanism persist, the overall sentiment remains bullish, with analysts predicting significant price appreciation.</p>
 <p class="paragraph">As Solana continues to evolve, its innovative approach and strategic maneuvers position it for substantial growth in the cryptocurrency market.</p>
 <p class="paragraph"><strong><em>Disclaimer</em></strong><em>:</em><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/solana-price-prediction-as-new-update-changes-network-fees-dynamics-tbt90189.html">https://thebittimes.com/solana-price-prediction-as-new-update-changes-network-fees-dynamics-tbt90189.html</a></p>

Solana price prediction as new update changes network fees dynamics

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