VanEck research head warns Solana upgrades could slash validator earnings

Asset manager VanEck has raised concerns about two upcoming Solana (SOL) blockchain upgrades potentially slashing validator earnings, according to a Cointelegraph report. The proposed Solana Improvement Documents (SIMDs) are SIMD 0123, which would distribute priority fees to validator stakers, and SIMD 0228, aimed at adjusting SOL's inflation rate to potentially reduce selling pressure from stakers. Matthew Sigel, head of digital asset research at VanEck, said on X that these changes could cut validator revenues by up to 95%, impacting smaller operators. He highlighted the fixed costs of running a Solana validator, including daily voting fees of about 1.1 SOL ($58,000 annually) and yearly hardware expenses of $6,000. Sigel warned that this could lead to greater network centralization around large entities like Coinbase and Binance.