The Defiant
2025-01-17 09:35:08

Multicoin Proposal Seeks to Reduce SOL Inflation and Transition to Market-Driven Emissions

Investment firm Multicoin Capital proposed a shift to Solana's token emission model on Thursday, moving away from a fixed schedule to a dynamic, market-driven approach. The proposal , authored by Tushar Jain and Vishal Kankani of Multicoin Capital, aims to reduce Solana's inflation. As of January 2025, Solana’s annual inflation rate stands at 4.78% and is set to gradually decrease 15% after each 180-epoch period, according to Mitrade Insights . That represents over $5 billion worth of SOL per year at current prices. The proposal underscores a need for Solana to evolve as more experts introduce their own ideas for optimizing the network. It also highlights concerns about inflationary pressures on Solana’s SOL token. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io

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