A new chapter for Solana: smarter emissions for a thriving network Historically, Solana has relied on a fixed emissions schedule to attract stackers and validators, but this system is starting to look a little 'old'.
Emissions are not regulated based on network activity and can exceed levels required for safety. This is a dynamic, market-based approach that can replace today's static methods. Smart emissions are smart, not hard work. Key points: dynamic security: as rates fall, smart emissions incentivize the grid to increase security;
minimum emissions: minimize #SOL inflation required to maintain security;
this shift provides four key benefits to the #Solana ecosystem Avoiding centralization: high inflation leads to centralization of ownership, which erodes unsecured SOLs over time. Smart #issuance provides more balanced ownership.
Stimulating #DeFi growth: lower inflation reduces the "risk-free" rate, making decentralized financial applications (DeFi) more attractive to users and developers.
Relieving selling pressure: high emission levels force stakers to sell their SOLs, creating an unnecessary burden on the market, especially to pay taxes. Reducing emissions reduces this burden.
Improved perception: although inflation is not a cost, many people perceive it as such, and this hurts the reputation of SOLs. Less inflation means less misunderstanding and healthier market signals.
New: @multicoincap published a proposal that could reduce inflation in Solana.
This Solana SIMD proposal would reduce the current fixed SOL issuance curve to a SOL issuance curve.
While Bitcoin's static issuance model is ideal for its goal of becoming digital gold, Solana's mission is different. Solana's goal is to synchronize global activity at the speed of light, which requires a more flexible approach.
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