Is the SOL token deflationary?

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Solana

@Diamond Hands 88

Is the SOL token deflationary?

#blockchain #cryptocurrency #english #sol

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08.11.2021

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@Diamond Hands 88 Автор вопроса

RAHUL (𝐰𝐢𝐥𝐥 𝐧𝐞𝐯𝐞𝐫 𝐃𝐌 𝐟𝐢𝐫𝐬𝐭)
Hello!! - The max supply of SOL is theoretically ...

Thank you so much

0

08.11.2021

RAHUL (𝐰𝐢𝐥𝐥 𝐧𝐞𝐯𝐞𝐫 𝐃𝐌 𝐟𝐢𝐫𝐬𝐭) · Accepted Answer

Hello!! - The max supply of SOL is theoretically infinite because of inflation. Inflation is currently ~5.25% or so. But it will gradually reduce over time, and in 10 years or so will hit its eventual final value of 1.5% per year. So 1.5% new SOL will be created every year at that point forever thereafter. However, there is also token burn, because 50% of all transaction fees are burned. So it will be a balance of inflationary force (inflation) against deflationary force (burn) and what the effective inflation or deflation will be is anyone's guess. However, it will land at something less than 1.5% per year max because the eventual value will be 1.5% minus burn. - Solana has a deflationary issuance schedule starting out at 8% for the first year and decreasing by 15% until it reaches 1.5% after around 11 years, from which point on it will remain constant. Inflated SOL supply is distributed to those staking (95%) with a small portion going into a treasury to fund development of the Solana ecosystem (5%). Solana transaction fees are paid in SOL and burnt. " - The remaining 50% are credited to the validator that produced the block. But I would suggest you to ask in discord channel to get better answer:) 🔗 https://solana.com/discord

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Is the SOL token deflationary?

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