#The SOL inflation mechanism will be adjusted.#
Hot Topic Overview
Overview
Solana's inflation mechanism is set to undergo an adjustment, with Multicoin Capital proposing a shift from the current fixed inflation model to a market-driven one, aiming to maintain a staking rate of around 50%. The proposal aims to control the staking rate by adjusting the SOL issuance. When the staking rate exceeds 50%, issuance will decrease, lowering staking rewards; conversely, when it falls below 50%, issuance will increase, encouraging more staking. Currently, SOL's inflation rate is approximately 4.8%, with a planned gradual decline to 1.5% annually. Multicoin argues that reducing inflation can decrease network centralization, enhance DeFi utility, and reduce selling pressure caused by staking rewards, but may lead to lower staking rewards.
Ace Hot Topic Analysis
Analysis
Multicoin Capital proposes adjusting Solana's SOL issuance mechanism from a fixed inflation rate to a market-driven model to maintain a staking rate of around 50%. The proposal aims to control the staking rate by adjusting issuance. When the staking rate is above 50%, issuance is reduced, lowering staking rewards, and vice versa. Currently, the SOL inflation rate is about 4.8%, originally planned to decrease annually to 1.5%. Multicoin believes that reducing inflation can reduce network centralization, improve DeFi utility, and lower selling pressure caused by staking rewards, but it may lead to a decrease in staking rewards. The proposal has not yet received an official response from the Solana Foundation but has sparked widespread discussion in the community.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Adjusting the SOL inflation mechanism can reduce network centralization and improve DeFi utility.
The market-driven model can maintain a staking rate of around 50%, reducing the selling pressure caused by staking rewards.
Reducing inflation may result in lower staking rewards.
Adjusting the inflation mechanism will change the SOL issuance mechanism, shifting from fixed inflation to a market-driven model.