Crypto Mining

With SIMD-0096 approved, Solana validators will receive priority fees.

Posted 1 minute ago In ~

Updated: May 28, 2024, 3:29 AM EDT

Solana brush

+1.43%
Validators voted in favor of Solana Improvement Document (SIMD)-0096. Instead of splitting the burn fee and reward validators 50/50 as before, the proposal is to send all transaction priority fees to the validators for the block created.

This proposal aims to help secure the network by improving incentives for how validators receive priority fees. SIMD-0096 can also improve incentives within the validator system by eliminating possible side transactions between block producers and transaction submitters.

“This will ensure that validators are properly incentivized to prioritize network security and efficiency rather than being incentivized to engage in potentially harmful side transactions,” the original proposal stated.

The proposal received 77% support in an on-chain vote from network validators.

Priority fees are a way to ensure that your transaction is placed at the front of the execution queue. This is an optional fee that users can add to their transactions to increase coverage.

SIMD-0096 proposed discontinuing priority fee burning in Solana transactions while maintaining a 50% burn of the base fee (or regular fee) paid within Solana transactions.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Related Articles

Back to top button