Solana News: Protocol Changes Aim to Reduce Selling Pressure, Raising Decentralization Concerns

Solana is making significant protocol changes that aim to offset sell pressure but have sparked discussions about decentralization.

Solana Proposal to Offset Sell Pressure Raises Decentralization Concerns

Solana’s (SOL) upcoming protocol changes aim to reduce selling pressure by an estimated $677 million to $1.1 billion annually, according to VanEck’s head of digital assets research. Two key Solana Improvement Documents (SIMD), SIMD 096 and SIMD 0228, are set to reshape how the network distributes fees and adjusts inflation to staking participation. SIMD 096, implemented on Feb. 12, modifies the fee burn mechanism, directing 100% of priority fees to validators, which increases their revenue while potentially disincentivizing off-chain trading.

Argentine Prosecutor Requests Freezing of $100M in LIBRA Scandal, Recovery of Deleted Tweets

The lead prosecutor investigating Argentine President Javier Milei’s alleged involvement in the LIBRA scandal has requested the freezing of $100 million in assets. Additionally, prosecutor Eduardo Taiano has requested the recovery of deleted social media posts, including a tweet from Milei promoting the Solana-based meme token LIBRA, as well as detailed records of LIBRA transactions. Milei had posted about LIBRA, highlighting its potential to encourage economic growth by funding small businesses and startups. However, he later deleted the post, and now faces fraud charges.

Crisis Of Confidence: Solana Records Massive Capital Loss

In February 2025, Solana experienced a capital hemorrhage amid increasing uncertainty in the crypto market. Investors, impacted by scandals related to memecoins and the record hack of Bybit where 1.4 billion dollars were stolen, turned towards safer digital assets. Solana saw outflows of 485 million dollars, primarily migrating to Ethereum, Arbitrum, and the BNB chain. This massive outflow reflects a broader movement of distrust towards risky digital assets.

Solana Whale Moves $72 Million to Coinbase, Fueling Sell-Off Fears

A large Solana (SOL) whale moved 494,153 SOL, valued at approximately $72 million, to Coinbase Institutional on March 4, 2025. This transfer, known as an “exchange inflow,” signals that the investor may intend to sell the assets, leading to increased supply in the market and downward pressure on the price.