Solana has officially approved a major shift in its fee distribution model, granting validators 100% of priority fees. The governance proposal passed on Monday night with 77% community support, marking a pivotal moment in the blockchain’s evolution toward enhanced efficiency, transparency, and network security.
This change signifies a strategic move to align validator incentives more closely with the long-term health of the network. By removing previous fee-splitting mechanisms and eliminating partial burns, Solana aims to foster a more sustainable and equitable ecosystem for all participants.
The Critical Role of Solana Validators
Validators are the backbone of any proof-of-stake blockchain, and Solana is no exception. These network participants run specialized software to validate transactions, produce new blocks, and maintain consensus across the decentralized network. Their work ensures that the blockchain remains secure, fast, and resistant to attacks.
In Solana’s high-performance environment—known for processing thousands of transactions per second—users often pay additional priority fees to expedite their transaction processing during periods of congestion. These fees act as an incentive for validators to include certain transactions ahead of others in a block.
👉 Discover how blockchain validators shape network performance and reliability.
Until recently, however, only half of these priority fees went to validators. The other 50% was burned, or permanently removed from circulation. This model, while initially designed to reduce inflationary pressure, inadvertently created unintended consequences.
Why the Fee Distribution Model Changed
The previous system—where 50% of priority fees were burned—led to inefficiencies and undesirable behaviors within the ecosystem. As highlighted by tao-stones, the creator of the governance proposal posted on the Solana forum, this split encouraged some validators to engage in off-chain agreements or "side deals" with traders and bots.
These私下 arrangements allowed validators to receive extra compensation—often in the form of direct SOL transfers—in exchange for prioritizing specific transactions. Such practices undermined fairness, reduced transparency, and introduced centralization risks, as powerful actors could effectively pay for preferential treatment outside the official fee structure.
To address this, SIMD-0096—the Solana Improvement and Deployment document behind the change—proposes a cleaner, more direct incentive model: 100% of priority fees now go directly to validators.
This eliminates the need for side deals by fully rewarding validators for their role in transaction selection and block production. It also simplifies the economic model, making it easier for new validators to understand and participate in the network.
Strengthening Network Security and Efficiency
One of the core goals of this update is to reinforce network security by ensuring validators have strong, transparent incentives to act in the best interest of the ecosystem.
With full priority fee rewards, validators are now more motivated than ever to maintain high uptime, invest in robust infrastructure, and avoid malicious behavior. Any attempt to manipulate transaction ordering for personal gain would risk slashing penalties and reputational damage—losses that now outweigh potential short-term gains from unethical practices.
Moreover, this change enhances transaction efficiency. Users who pay higher priority fees can be more confident their transactions will be processed quickly—without relying on opaque backroom deals. This creates a more predictable and trustless environment, aligning with core blockchain principles.
Tao-stones emphasized that this shift encourages validators to prioritize network integrity over individual profit-seeking behaviors. In doing so, it strengthens decentralization and promotes long-term sustainability.
👉 Learn how transparent fee models improve blockchain fairness and performance.
Implementation Details: SIMD-0096 and Feature Activation
The technical implementation of this change is documented under Solana Improvement and Deployment Proposal SIMD-0096, activated via feature flag #34731 on the Solana mainnet beta. Once enabled, this feature modifies the runtime logic of the Solana client software to redirect 100% of collected priority fees to the validator responsible for including the transaction in a block.
This update does not require hard fork coordination across the network. Instead, it leverages Solana’s modular upgrade framework, allowing nodes to adopt the change seamlessly through standard software updates.
Importantly, the base transaction fee (a small fixed cost) remains unchanged. Only the variable priority fee component—added at the user’s discretion—is now fully awarded to validators.
This streamlined approach reduces complexity in fee accounting and improves clarity for developers building decentralized applications (dApps) on Solana. It also supports better tooling for estimating gas costs and optimizing transaction strategies.
Frequently Asked Questions (FAQ)
Q: What are priority fees on Solana?
A: Priority fees are optional payments users add to their transactions to increase the likelihood of faster processing during network congestion. They incentivize validators to include specific transactions ahead of others in a block.
Q: How did Solana’s fee model work before this change?
A: Previously, 50% of priority fees were given to validators, while the remaining 50% were burned. This partial burn model aimed to counter inflation but led to off-chain validator deals.
Q: Why is giving 100% of fees to validators better for the network?
A: Full fee rewards eliminate incentives for private agreements, promote transparency, and align validator profits directly with honest participation. This strengthens decentralization and network security.
Q: Does this change increase transaction costs for users?
A: No. Users still control how much they pay in priority fees. The change only affects how those fees are distributed—not the amount charged.
Q: When did this proposal take effect?
A: The governance vote concluded on Monday night with 77% approval. The feature was subsequently activated on mainnet beta via SIMD-0096 and is now live.
Q: Can users still get their transactions processed without paying priority fees?
A: Yes. Standard transactions without priority fees will still be processed, though they may experience delays during peak usage times.
👉 Explore how next-gen blockchain upgrades impact user experience and validator economics.
Core Keywords
- Solana validators
- Priority fees
- Blockchain governance
- Network security
- Fee distribution model
- SIMD-0096
- Transaction efficiency
- Decentralized consensus
This landmark update reflects Solana’s ongoing commitment to innovation through community-driven governance. By empowering validators with full economic rewards, the network takes a significant step toward greater transparency, fairness, and long-term resilience in the rapidly evolving world of decentralized technology.