I initially thought the Solana governance vote to double the disinflation rate was just another tokenomics adjustment.
The more I looked at it, the less simple it seemed.
The proposal would increase Solana’s annual disinflation rate from 15% to 30%. In plain terms, SOL would move toward its long-term 1.5% inflation rate much faster roughly 2.8 years instead of around 5.7 years.
That sounds positive for SOL holders at first.
Less new SOL being created means less inflationary pressure over time. The proposal estimates that roughly 18.9 million fewer SOL could be issued over six years compared with the current schedule.
But there’s another side I don't want to overlook.
#SolanaGovernanceVoteToDoubleDeflationRate
$SOL
The more I looked at it, the less simple it seemed.
The proposal would increase Solana’s annual disinflation rate from 15% to 30%. In plain terms, SOL would move toward its long-term 1.5% inflation rate much faster roughly 2.8 years instead of around 5.7 years.
That sounds positive for SOL holders at first.
Less new SOL being created means less inflationary pressure over time. The proposal estimates that roughly 18.9 million fewer SOL could be issued over six years compared with the current schedule.
But there’s another side I don't want to overlook.
#SolanaGovernanceVoteToDoubleDeflationRate
$SOL