Why do solana team keep bringing more tokens both in

Question

Solana

Tycoon

Why do solana team keep bringing more tokens both in

circulation and total supply? The market cap is increasing but the problem is more tokens are brought in.

#blockchain #cryptocurrency #english #sol

0

05.11.2023

9 ответов

12 просмотров

Tycoon Автор вопроса

Group Butler [beta]
Find out about Solana’s tokenomics here: https:/...

I tried to read everything but I don't think my question was answered but I would like to get some clarification. Will ever be a time when tokens are no longer brought into circulation and if the answer is yes, when?

0

6 месяцев назад

Steve

Tycoon
I tried to read everything but I don't think my qu...

Hey Tycoon, you answer can be found with a simple google search. The top result when using google even leads to the site I just posted. Opening the site leads to the section that reads; Solana's annual inflation rate is currently 5.710% and will decrease by 15% every year. Note that this is an 'epoch-year', or ~180 epochs. As the length of an epoch varies from ~2.5 - 3.5 calendar days dependent on network performance, actual inflation rate will vary. This is one reason why staking APYs are often higher than the inflation rate. The other key reason is that APYs account for the compounding of SOL within a stake account over the course of a calendar year. Solana's inflation effectively means that non-stakers pay stakers for delegating their SOL to ensure network security. It is offset somewhat by transaction fees: 50% of every transaction fee is burned, while the remainder is given as a 'block reward' to the validator who processed the transaction. Over time it is thought that fee volume should increase to compensate validators for the fall in staking rewards

0

6 месяцев назад

Tycoon Автор вопроса

Steve
Hey Tycoon, you answer can be found with a simple ...

I read all this on the site you referred me to but sounded like Greek to me. Because I didn't understand how is all these figures related to my question. I might understand that the reason we are having more tokens is because solana is being inflated which isn't good news I just want to know will we ever have a day when there is no inflation in solana because if we are talking about the 15% of 5.7% that will decrease that's a small fraction and remember the inflation percentage varies perhaps in years to come it'll be 9% or even more. My question is straight forward, will we ever have a day when there are no more tokens brought in? The answer could be yes or no.

0

6 месяцев назад

Steve

Tycoon
I read all this on the site you referred me to but...

It will never be zero, because there is also a burning rate. whether SOL will be inflationary or deflationary will depend on network usage and maybe updates in cost of using and the network

0

6 месяцев назад

Steve

Tycoon
I read all this on the site you referred me to but...

The reason it may sound Greek is because it is fairly complicated mechanisms 🙂

0

6 месяцев назад

Tycoon Автор вопроса

Steve
The reason it may sound Greek is because it is fai...

Thanks now your explanation is more clear, so this means if there is a huge usage of solana that 50% fees burn will deflate it?

0

6 месяцев назад