Solana Validators to Receive Priority Fees: Network Survives Crashes Amid Impressive Growth
Summary:
The Solana community recently voted in favor of giving 100% of priority fees to network validators. This significant shift in the distribution of priority fees, which previously split between Solana's validators and its token-burning mechanism, was authorized by a 77% majority vote. Solana's token price has seen considerable growth, despite regular network congestion issues and recurring crashes. Its high transaction throughput makes it the fastest blockchain network, surpassing even Ethereum's speed. The development team continues to work on upgrades and bug fixes, though prospects of future network crashes are not discounted.
On May 27, Solana community members reached a consensus to allocate 100% of priority fees, derived from network users, to network validators. The proposal won by a 77% majority. Prior to this, Solana's priority fees were equitably distributed between Solana's validators and Solana's token-burning mechanism. Solana's recent vote labeled SIMD-0096 explained this shift. The source of this information was SolanaFloor and ratedw3b.
Since late 2023, Solana's (SOL) token cost has significantly escalated, peaking at around $210 in March 2024. Currently, it's valued at approximately $171. Despite this impressive growth, Solana keeps grappling with network congestion issues and multiple shutdowns, having experienced at least four significant downtimes.
The initial noteworthy shutdown happened in September 2021, resulting from bot-driven congestion that halted Solana's network for 17 hours. Just four months afterwards, in December, the network crashed again, due to an unexpected surge in traffic. Another crash followed that same month courtesy of network congestion triggered by SolChick's game token sale. In 2023, a massive outage happened on Solana again, arising from heavy network traffic. At this point, Solana's validators attributed the crash to a recent upgrade of the validator software intending to solve the issue, but reverting to an older software version didn't rectify the problem.
Eventually, the validators had to manually reboot the entire network using the most robust validation software version, restoring standard network operations. After these prominent network crashes, the developers of Solana reassured the community by promising bug fixes and other upgrades to the Solana blockchain and acknowledged the possibility of future crashes.
These shutdowns seem to stem from high transaction output. As per CoinGecko data, Solana's blockchain displayed skyrocketing per-second transaction figures, achieving an unprecedented 1,504 TPS on April 6, 2024. This record validates Solana as the most rapid blockchain network, exceeding Ethereum's current layer-1 speed by a landslide. However, it also underscores the network's quest to balance dependability with innovative transaction capacity.
Published At
5/27/2024 9:41:44 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.