VanEck: Solana Updates Might Cut Validator Earnings by 95%

VanEck released an assessment stating that Solana’s March upgrades could cause validator revenues to drop by nearly 95%. This figure sparked widespread debate among stakers and node operators. The main factor is rumored to be lower fees and adjusted reward distributions, intensifying competition.

Currently, a typical Solana validator can process several thousand transactions per second. Rough estimates suggest node operators might earn up to $30 thousand monthly under favorable market conditions. However, VanEck believes the new protocol severely limits reward shares and could shrink profits.

Solana’s developers highlight that the upgrade aims to optimize the network and reduce spam, while some in the community worry about diminishing validation incentives. VanEck offers no definitive long-term outlook but cautions that the changes may be more complex than initially anticipated.