{"id":48486,"date":"2025-02-28T09:38:13","date_gmt":"2025-02-28T09:38:13","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=48486"},"modified":"2025-02-28T09:38:13","modified_gmt":"2025-02-28T09:38:13","slug":"there-is-a-plan-to-reduce-solana-sol-inflation-will-it-sail-through","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=48486","title":{"rendered":"There Is a Plan to Reduce Solana (SOL) Inflation: Will It Sail Through?"},"content":{"rendered":"<p>Solana price is under immense selling pressure, slipping below $130. Will this proposal seeking to reduce SOL inflation sail through?<\/p>\n<p><span>S<\/span><span>olana has not escaped the crypto market\u2019s brutal downturn. Few coins <\/span><span>outperform<\/span><span> Bitcoin, with exceptions like <a class=\"general-link\" title=\"Pi Network Mainnet Launch is Here: Can Pi Crypto Hit $1,000?\" href=\"https:\/\/99bitcoins.com\/news\/pi-network-mainnet-launch-is-here-can-pi-crypto-hit-1000\/\">Pi Network<\/a>, which continues to ride the hype of its mainnet launch. <\/span><\/p>\n<p><span>Together with other top 10 altcoins, Solana, Ethereum, Tron, Cardano, and even Bitcoin, have shed double-digit percentages <\/span><span>over the past trading week<\/span><span>.<\/span><span> This sell-off has slowed activity across their blockchains.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\"><\/div>\n<div class=\"chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<div class=\"chart__info-value\">&#8211;<\/div>\n<\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\">Log<\/button>\n            <\/div>\n<\/div>\n<\/div>\n<div class=\"chart__container\"><\/div>\n<\/div>\n<p><span>On Solana, for instance, revenue from smart contract deployments and transfers has declined\u2014a trend likely to persist as SOL prices fall from all-time highs.<\/span><\/p>\n<h2><span>The Sell-Off: Meme Coin Mania Over?<\/span><\/h2>\n<p><span>Currently, Solana is trading below $130, down nearly 55% from its peak of around $295 in January 2025. Prices briefly surged to that record, surpassing 2021 highs, after Donald Trump launched his meme coin. Since then, however, the coin has been on a downward slide.<\/span><\/p>\n\n<p>(<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/symbols\/SOLUSDT\/\" target=\"_blank\" rel=\"noopener\">SOLUSDT<\/a>)<\/p>\n<p><span>The drop partly mirrors Bitcoin\u2019s unexpected plunge from $100,000 to below $90,000, settling at spot rates of around $83,500. Compounding this is the fading meme coin frenzy. <\/span><\/p>\n<p><span>Pump.fun metrics <a class=\"general-link\" href=\"https:\/\/x.com\/n01man\/status\/1894697506300190767\" target=\"_blank\" rel=\"noopener\">show<\/a> fewer tokens graduating to Raydium listings and a decline in new coin launches, reducing demand for SOL and adding pressure on price. It has even been worse for some of the <a class=\"general-link\" title=\"Best Meme Coins to Buy Now by Market Cap \u2013 February 2025\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-meme-coins\/\" target=\"_blank\" rel=\"noopener\">best meme coins<\/a> as demand slows down on Solana.<\/span><\/p>\n\n<p><span>The broader market cap has <a class=\"general-link\" href=\"https:\/\/www.coingecko.com\/\" target=\"_blank\" rel=\"noopener\">slipped<\/a> 8.8% to $2.75 trillion, reflecting this bearish mood.<\/span><\/p>\n<p><span>Amid these challenges, there\u2019s a glimmer of hope. SIMD-0228 proposes<\/span><span>\u00a0to curb Solana\u2019s circulating supply over time, offering a potential lifeline for SOL holders.<\/span><\/p>\n<h2><span>SIMD-0228: A Solana (SOL) Inflation Reduction Plan<\/span><\/h2>\n<p><span>Introduced by Multicoin Capital executives Tushar Jain and Vishal Kankani, SIMD-0228 seeks to shift Solana from its fixed inflation schedule to a dynamic, market-driven model. <\/span><\/p>\n<p>Today <a href=\"https:\/\/twitter.com\/kankanivishal?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@kankanivishal<\/a> and I released a Solana Improvement Proposal to reduce Solana inflation. <\/p>\n<p>As Solana matures, stakers increasingly earn SOL through mechanisms like MEV. This income stream reduces the network&#8217;s historical exclusive reliance on token emissions to attract stake\u2026<\/p>\n<p>\u2014 Tushar Jain (@TusharJain_) <a href=\"https:\/\/twitter.com\/TusharJain_\/status\/1879942468726079773?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 16, 2025<\/a><\/p>\n\n<p><span>Since its 2020 launch, Solana has followed a predictable inflation path: starting at 8%, it decreases 15% annually, aiming for a long-term rate of 1.5%. <\/span><\/p>\n<p><span>Today, inflation is 4.7%, with most new SOL rewarding validators and stakers. <\/span><span>This<\/span><span> has pushed the <a class=\"general-link\" href=\"https:\/\/solanacompass.com\/tokenomics\" target=\"_blank\" rel=\"noopener\">circulating supply<\/a> to 498 million <\/span><span>now<\/span><span>.<\/span><\/p>\n\n<p>(<a class=\"general-link\" href=\"https:\/\/solanacompass.com\/tokenomics\" target=\"_blank\" rel=\"noopener\">Source<\/a>)<\/p>\n<p><span>If approved in early March voting, SIMD-0228 will tie SOL issuance to staking participation, targeting a 50% staking rate. <\/span><\/p>\n<p><span>Unlike Ethereum, Tron, or BNB Chain, there\u2019s no direct token burn. <\/span><\/p>\n<p><span>Instead, <\/span><span>if staking exceeds 50%, issuance drops\u2014potentially to 0%. Conversely, if <\/span><span>staking falls below 50%, issuance rises to encourage staking.<\/span><\/p>\n<p><span>This<\/span><span> could slash inflation to below 1%, down from 4.7%, a sharp reduction that favors holders over validators, who now earn from both block rewards and MEV, for example, from Jito tips. By curbing future supply, SIMD-0228 could bolster prices as SOL becomes scarce, influencing <\/span><span>its<\/span><span> supply-and-demand dynamics.<\/span><\/p>\n<p><span>At press time, SOL has support at $130 and resistance at $175, locked in a bearish breakout. If prices slip below $130 before the March vote\u2014and before the FTX estate unloads 11.2 million SOL on March 1\u2014SOL could crash to $100 in a continued bear trend.<\/span><\/p>\n<p><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/goto\/mindofpepe?transfer=1\" target=\"_blank\" rel=\"noopener\"><strong>Don\u2019t Psych Yourself Out! Get in on $MIND of Pepe Right NOW<\/strong><\/a><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"noopener\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Solana drops below $130, will this proposal be approved?<\/h3>\n<p>         Solana is dropping, fast. At press time, SOL is below $130     <\/p>\n<p>         Inflation has been falling but will this proposal get the nod from the community     <\/p>\n<p>         With lower inflation, will SOL bounce higher in March?     <\/p><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/there-is-a-plan-to-reduce-solana-sol-inflation-will-it-sail-through\/\">There Is a Plan to Reduce Solana (SOL) Inflation: Will It Sail Through?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Solana price is under immense selling pressure, slipping below $130. Will this proposal seeking to reduce SOL inflation sail through? Solana has not escaped the crypto market\u2019s brutal downturn. Few coins outperform Bitcoin, with exceptions like Pi Network, which continues to ride the hype of its mainnet launch. Together with other top 10 altcoins, Solana, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-48486","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/48486"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48486"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/48486\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}