Altcoins News
By MikeT
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The SIMD-0228 Proposal: A Game Changer for Inflation?. The latest Solana Improvement Proposal (SIMD-0228) aims to peg the issuance rate of Solana tokens…
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Why Is Solana’s Inflation So High?. To understand why the proposal is significant, it's important to grasp how Solana’s current…
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A Tough Pill to Swallow for Stakers. While many in the community view the proposal as a positive step for Solana’s long-term growth,…
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Solana Faces Bearish Pressure Ahead of March Unlock. The timing of the SIMD-0228 proposal comes at a particularly precarious moment for Solana.
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What’s Next for Solana?. As Solana faces increased bearish pressure and the looming unlock event, all eyes are on the vote…
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Solana (SOL), one of the top contenders in the world of cryptocurrency, is making waves with a new proposal that could drastically reduce the inflation of its token.
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Ryan Watkins, a crypto VC partner at Syncracy Capital, strongly supports the proposal, stating that it could reduce inflation by an astounding 80%.
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“This is a potential 80% inflation reduction coming to SOL soon,” Watkins tweeted, signaling his belief that the proposal could be a turning point for the network.
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To understand why the proposal is significant, it's important to grasp how Solana’s current inflation model works. At the moment, Solana releases about 4.
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Vishal Kankani, a partner at MultiCoin Capital, has pointed out that Solana’s fixed issuance rate is much higher than it should be, especially when compared to Ethereum.
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“Solana is overpaying for network security,” Kankani said. “High emissions not only push prices down by increasing tax-induced selling but also inflate staking returns…
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In short, the large number of new tokens entering the market each year has led to excessive selling pressure, putting downward pressure on SOL prices.
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Currently, stakers earn about 10% in rewards for locking up their SOL tokens. However, with the issuance rate set to decrease, staking rewards could be slashed by nearly 80%.
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In fact, Solana has already seen a sharp drop in value over the past several months. From its record high of $295, the token has shed more than 53%, dipping below $140 in recent…
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Greg Magadini, a market expert at Amberdata, has stated that the upcoming unlock may already be priced in.
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