Solana News Today: Solana's Emission Reform: Charting a Course for Long-Term Blockchain Economic Stability
- Solana proposes SIMD-0411 to cut $2.9B token emissions over six years, accelerating inflation reduction to 1.5% by 2029. - The "leaky bucket" plan aims to curb supply growth by 3.2% annually, stabilizing market dynamics through scarcity-driven value. - Staking yields may drop from 6.41% to 2.42% by Year 3, risking 47 validators' profitability and forcing industry consolidation. - Institutional adoption surges with $421M in Solana ETF inflows and Coinbase's acquisition of Solana-based DEX Vector. - The ov
Solana is on the verge of its most substantial economic transformation to date, with a new proposal aiming to cut $2.9 billion in token emissions over the next six years. The plan, officially named SIMD-0411, is designed to speed up the blockchain’s shift to a low-inflation model by increasing its annual disinflation rate from 15% to 30%. Should this be approved, Solana would achieve its target inflation rate of 1.5% by 2029—three years ahead of the previously set 2032 goal
Supporters refer to the proposal as a “leaky bucket” solution, aiming to tackle ongoing sell pressure resulting from high emissions. By trimming the yearly supply growth by 3.2% across six years (amounting to 22.3 million SOL), the network
Although the proposal is expected to provide long-term price stability, it does introduce operational challenges. Staking returns, currently at 6.41%, are forecasted to drop to 2.42% by the third year,
The straightforward nature of the proposal—requiring only a single parameter change—has already attracted early support from major stakeholders. The authors highlight that this adjustment carries little risk of technical issues or unexpected complications,
Solana’s economic revamp comes at a time of rising institutional interest. The recent debut of several
At the same time, Coinbase’s purchase of the Solana-based decentralized exchange Vector highlights the network’s growing infrastructure. The platform plans to incorporate DEX trading to advance its “everything exchange” approach, leveraging Solana’s fast ecosystem
The SIMD-0411 initiative marks a shift from incentivized expansion to stability driven by scarcity. While validators may experience short-term profit squeezes, supporters believe this move is crucial for establishing Solana as a credible asset class. As the network adapts to these changes,
---
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Experiences Sharp Decline as Macroeconomic Conditions Change: The Impact of Increasing Interest Rates and Heightened Regulatory Oversight on Cryptocurrency Values
- Bitcoin's 2025 late-year drop from $126,000 to $80,000 reflects heightened sensitivity to Fed policy shifts and regulatory pressures. - Fed officials like Susan Collins signaled "mildly restrictive" policy, crushing rate cut expectations and triggering 70% decline in December cut odds. - Regulatory crackdowns on crypto mixing and mining contrasted with institutional buying (e.g., Cardone Capital's $15. 3M Bitcoin purchase) amid market volatility. - Political uncertainty (60% expect Trump-era crypto gains
Bitcoin’s Abrupt Price Swings and Institutional Outflows: An In-Depth Analysis of Market Dynamics and Liquidity Challenges
- Institutional investors are shifting capital from Bitcoin to AI infrastructure, driven by higher returns in 2025. - Bitcoin's liquidity has declined, with order book depth dropping to $14M by mid-2025, exacerbating volatility. - Structural shifts, including mining repurposing and AI-focused capital flows, threaten Bitcoin's hash rate and market stability. - Alternative projects like XRP Tundra and AI-driven risks challenge Bitcoin's dominance, complicating investor strategies.
X Financial Shifts to Risk-First Approach: Third Quarter Revenue Drops 13.7% Amid Strategic Change
- X Financial reported 23.9% YoY revenue growth to RMB1.96B in Q3 2025, but saw 13.7% sequential decline due to cautious lending and risk prioritization. - Net income rose 12.1% annually to RMB421M but fell 20.2% sequentially, driven by higher credit provisions and operating costs. - Share repurchases under $100M buyback program totaled $67.9M, with $48M remaining as the company emphasizes disciplined risk management. - Strategic pivot to risk mitigation contrasts with broader fintech sector caution, refle
Ethereum News Today: Ethereum Faces $2,800 Test—Will It Surge to $3,000 or Retreat to $2,300?
- Ethereum tests $2,800 resistance, key threshold for November, with potential to rebound toward $3,000 if breakout succeeds. - Recent $55.7M inflow into ETH ETFs, led by Fidelity’s FBETH, signals cautious institutional interest after nine-day outflow streak. - Technical indicators show improved momentum with RSI rebound and MACD stabilization, but $2,800 remains critical for further gains. - Derivatives data and Coinbase’s ETH-backed lending expansion hint at conditional recovery, though liquidation risks
Trending news
MoreCrypto prices
More
