Here’s what Solana’s yearly inflation rate means for SOL price

Here’s what Solana’s yearly inflation rate means for SOL price

Solana (SOL) is an inflationary cryptocurrency, which means its circulating supply increases over time, diluting its price. These economics are by the protocol’s design; thus, investors must understand how it affects their holdings and decisions.
Notably, there is no consensus on the exact yearly inflation rate for Solana or other cryptocurrencies. Data may vary from each source’s definition of inflation or circulating supply.
First, the Solana Foundation considers only the issuance of new tokens to pay the network’s staking validators as inflation. Solana Labs has a similar understanding, according to its documentation.
Additionally, the project’s documentation mentions a yearly disinflation rate of around 15%. As stated by the two core entities behind the project, its issuance rate started at 8% by launch, following what they call an “inflation schedule,” resulting in long-term forecasted supply inflation of 1.5%.
Interestingly, SOL would have a yearly inflation rate of a

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