let's talk about $SOL
The proposal aims to increase SOL’s annual rate of disinflation from 15% to 30%. In other words, the issuance of new SOL would slow down faster than before.
Why do some think this is bullish?
* Less future SOL issuance would mean less sell pressure from staking rewards.
* The supply would grow more slowly, which could support the price if demand stays the same or increases.
* The time to reach the 1.5% target inflation would be reduced from about 5.7 years to 2.8 years.
The downside is that staking rewards could drop slightly. Some analyses estimate a reduction in annual staking yield from around 4.93% to 4.34% during the first year.
The proposal aims to increase SOL’s annual rate of disinflation from 15% to 30%. In other words, the issuance of new SOL would slow down faster than before.
Why do some think this is bullish?
* Less future SOL issuance would mean less sell pressure from staking rewards.
* The supply would grow more slowly, which could support the price if demand stays the same or increases.
* The time to reach the 1.5% target inflation would be reduced from about 5.7 years to 2.8 years.
The downside is that staking rewards could drop slightly. Some analyses estimate a reduction in annual staking yield from around 4.93% to 4.34% during the first year.