Solana co-founder hails SIMD-0228 rejection as a milestone for self-governance

Solana co-founder Anatoly Yakovenko views the failure of the Solana Improvement Document (SIMD-0228) as a significant milestone in establishing a self-governing Solana ecosystem. 

He added that the SIMD-0228’s rejection would help to resolve governance disputes in the network’s favor.

The SIMD-0228 only received a 61.4% approval, failing to reach the required 66.67%, despite a 74% voter turnout. The proposal was meant to help slash the 4.7% inflation rate on the Solana network, which proponents believed would promote SOL’s growth.

Anatoly Yakovenko believes Solana’s governance needs to be fast and decisive

Anatoly Yakovenko argued that Solana’s governance needs to be quick and decisive, believing prompt government action will be key in pursuing better solutions. He perceives the SIMD-0228 rejection as good for the network’s self-governance. 

Solana governance needs to be fast and decisive. I pushed for 228 really hard, and it failed decisively and fast. This means that resources can now be spent on a better approach.

Anatoly Yavkovenko

According to Yavkovrnlo, how fast the ecosystem iterates is a thousand times more important than making sure that every proposal passes. If approved, the Solana improvement document would have altered Solana’s tokenomics, making the network conform to a more dynamic inflation model.

The proposal aimed to reduce inflation rates by staking rewards, which would have helped boost the SOL’s trading prices and helped the ecosystem drop its fixed inflation model. However, most of the proposal’s opponents had concerns over centralization.

Analysts believe SOL could hit $3800 

SOL’s price movements create a traditional cup and handle formation, leaning more towards a bullish future. The cup formation features a rounded bottom, followed by a handle that dips slightly downward before a potential breakout. 

Analysts believe the token could even hit $3800 if the pattern continues. That would mean the token would have to grow by more than 2,490%.

SOL is currently changing hands at $128.89, a 4.48% fall in the last 24 hours. According to analysts, however, the price drop will not impact the token’s future value, provided its support zones hold out.

A confirmed breakout from the handle point would result in a price surge, drawing increased market interest in Solana.

Some experts have even speculated that SOL could surpass Ethereum’s market cap in the forthcoming years.

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