Solana validators to receive full priority fees as SIMD-0096 proposal gains approval

Solana validators voted in favor of Solana Improvement Documents (SIMD)-0096, a proposal to send all transaction priority fees to validators for the blocks they produce — instead of the previous 50/50 split between burning fees and rewarding validators. 

This proposal aims to improve incentives around how validators receive priority fees, helping with network security. SIMD-0096 may also eliminate possible side deals between block producers and transaction submitters, improving incentives within the validator system.

"This ensures that validators are appropriately incentivized to prioritize network security and efficiency, rather than being incentivized to engage in potentially detrimental side deals," the original proposal stated.

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

Priority fees are a way to ensure a user’s transaction is placed at the front of the execution ordering queue. These are optional fees that a user can add to their transaction to increase inclusion guarantee.

SIMD-0096 proposed to stop burning the priority fees in Solana transactions while still maintaining the 50% burn of the base fees (or normal fees) paid within Solana transactions.

Source : The Block Crypto News / May 28, 2024