{"id":15474,"date":"2025-02-28T09:46:56","date_gmt":"2025-02-28T09:46:56","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=15474"},"modified":"2025-02-28T09:46:56","modified_gmt":"2025-02-28T09:46:56","slug":"there-is-a-plan-to-reduce-solana-sol-inflation-will-it-sail-through","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=15474","title":{"rendered":"There Is a Plan to Reduce Solana (SOL) Inflation: Will It Sail Through?"},"content":{"rendered":"<div>\n<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 data-preserver-spaces=\"true\">S<\/span><span data-preserver-spaces=\"true\">olana has not escaped the crypto market\u2019s brutal downturn. Few coins <\/span><span data-preserver-spaces=\"true\">outperform<\/span><span data-preserver-spaces=\"true\"> 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\/\" rel=\"\">Pi Network<\/a>, which continues to ride the hype of its mainnet launch. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Together with other top 10 altcoins, Solana, Ethereum, Tron, Cardano, and even Bitcoin, have shed double-digit percentages <\/span><span data-preserver-spaces=\"true\">over the past trading week<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> This sell-off has slowed activity across their blockchains.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_67c185666f398\" data-coin-id=\"sol-solana\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_67c185666f398-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_67c185666f398-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\" id=\"crypto_chart_67c185666f398-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67c185666f398-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67c185666f398-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_67c185666f398-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_67c185666f398-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_67c185666f398-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_67c185666f398-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_67c185666f398-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_67c185666f398-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_67c185666f398-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<p><span data-preserver-spaces=\"true\">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 data-preserver-spaces=\"true\">The Sell-Off: Meme Coin Mania Over?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">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<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/www.tradingview.com\/x\/zVCqGtZ4\/\" width=\"1499\" height=\"859\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/symbols\/SOLUSDT\/\" target=\"_blank\" rel=\"noopener nofollow\">SOLUSDT<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">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 data-preserver-spaces=\"true\">Pump.fun metrics <a class=\"general-link\" href=\"https:\/\/x.com\/n01man\/status\/1894697506300190767\" target=\"_blank\" rel=\"noopener nofollow\">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<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/GktQF6EW8AEJNOC?format=jpg&amp;name=large\" alt=\"Image\"><\/p>\n<p><span data-preserver-spaces=\"true\">The broader market cap has <a class=\"general-link\" href=\"https:\/\/www.coingecko.com\/\" target=\"_blank\" rel=\"noopener nofollow\">slipped<\/a> 8.8% to $2.75 trillion, reflecting this bearish mood.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Amid these challenges, there\u2019s a glimmer of hope. SIMD-0228 proposes<\/span><span data-preserver-spaces=\"true\">\u00a0to curb Solana\u2019s circulating supply over time, offering a potential lifeline for SOL holders.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">SIMD-0228: A Solana (SOL) Inflation Reduction Plan<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">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<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today <a href=\"https:\/\/twitter.com\/kankanivishal?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">@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=\"nofollow\">January 16, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">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 data-preserver-spaces=\"true\">Today, inflation is 4.7%, with most new SOL rewarding validators and stakers. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> has pushed the <a class=\"general-link\" href=\"https:\/\/solanacompass.com\/tokenomics\" target=\"_blank\" rel=\"noopener nofollow\">circulating supply<\/a> to 498 million <\/span><span data-preserver-spaces=\"true\">now<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-210349\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142.png\" alt=\"\" width=\"1317\" height=\"527\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142.png 1317w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142-300x120.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142-1024x410.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142-768x307.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-28T112515.142-50x20.png 50w\" sizes=\"auto, (max-width: 1317px) 100vw, 1317px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/solanacompass.com\/tokenomics\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">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 data-preserver-spaces=\"true\">Unlike Ethereum, Tron, or BNB Chain, there\u2019s no direct token burn. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Instead, <\/span><span data-preserver-spaces=\"true\">if staking exceeds 50%, issuance drops\u2014potentially to 0%. Conversely, if <\/span><span data-preserver-spaces=\"true\">staking falls below 50%, issuance rises to encourage staking.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> 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 data-preserver-spaces=\"true\">its<\/span><span data-preserver-spaces=\"true\"> supply-and-demand dynamics.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">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=\"nofollow 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 nofollow\">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<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n         Solana is dropping, fast. At press time, SOL is below $130     <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         Inflation has been falling but will this proposal get the nod from the community     <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         With lower inflation, will SOL bounce higher in March?     <\/li>\n<\/ul><\/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>\n<\/div>\n","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":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-15474","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/15474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15474"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/15474\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}