| Cryptocurrency | Price (USDT) |
|---|---|
| BTC | $107310.0000000000 |
| ETH | $2432.0040000000 |
| BNB | $648.6497100000 |
| XRP | $2.1882250000 |
| ADA | $0.5651921000 |
| SOL | $149.8551000000 |
| DOGE | $N/A |
| DOT | $3.3947000000 |
| LTC | $86.2874000000 |
| LINK | $13.3416700000 |
Category: CRYPTO NEWS
The post Inside Solana’s Debate on a Major Reduction in SOL Inflation appeared on BitcoinEthereumNews.com. Solana’s decision-makers are debating an economic overhaul that could boost SOL’s investment appeal, but critics warn it could knock out small-time validators who contribute to the network’s decentralization. Like so many real-world economic discussions, this one centers on inflation. Any economist can tell you that some is inevitable. For proof of stake blockchains like Solana, it’s also by design. The network automatically prints new tokens to reward the validators who keep their networks running, giving them a reason to do the expensive computing work. But Solana’s powerbrokers largely believe the network is printing too much new SOL, too fast. One proposed solution, SIMD-0228, co-written by a partner at the powerful venture firm Multicoin Capital, introduces a market-driven system that slashes inflation from 4.7% to around 1.5%, assuming current staking rates continue. Such a change would keep billions of dollars of new SOL from entering circulation annually. SOL’s price chart would likely benefit from validators and their stakers earning, and selling, fewer new tokens. Tushar Jain, the proposal’s Multicoin co-author has claimed it will also make Solana more Wall Street friendly. In a February call he said it eliminates the “enormous opportunity cost” of investing in the Solana ETF, a still theoretical product that almost certainly won’t have access to staking rewards. Solana’s loudest voices, including co-founder Anatoly Yakovenko, Helius CEO Mert Mumtaz and influential validators, especially large ones, have lined up behind the proposal, calling it necessary for Solana’s evolution. Rejiggering Solana’s inflation regime could, however, imperil smaller validators who already navigate tight margins. Even supporters of 228 have acknowledged the proposal might force 100 or more of Solana’s 1300 validators out of business, critics warn. “I feel that most small/medium-sized validators are against it,” said Jota, who runs Pine Stake, one such validator. He claimed “the consequences of it…
2025-03-07T03:44:10+00:00