Solana Increases SOL Emission Cut to 30%
The Solana network has approved an increase in the annual inflation reduction rate of its cryptocurrency SOL from 15% to 30%. The initiative received support from 67% of the votes, surpassing the 66.67% threshold necessary for decisions of this magnitude by three-tenths. The voting, which was open from August 23, recorded a participation of 433.49 million SOL among 1,326 voters. Abstentions totaled 20.63 million tokens, and negative votes reached 66.19 million, but the minimum quorum required was met. Solana's monetary model, which originally anticipated a decreasing inflation rate down to 1.5% by 2032, now expects to reach that minimum rate by the first half of 2029. This new agreement, dubbed 'Double Deflation', will prevent the issuance of approximately 18.9 million SOL over the next six years, representing a 2.6% decrease from the projected supply. The next step for developers is to integrate the SIMD-0550 code into the network's validator clients, which will require monitoring the software activation date to assess its impact on liquidity and yields.
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