The SIMD-0228 proposal concerning Solana's inflation rate recently failed to pass. Solana's inflation rate is currently at 4.6%, which some stakeholders deem too high, starting at 8% and decreasing by 15% annually until a terminal rate of 1.5% in 2030. Carlos Gonzalez Campo stated that the failure of the resolution implies that SOL holders might be overspending on security and diluting their holdings. He refers to a phenomenon called the 'leaky bucket,' where emissions add selling pressure as transfers may be diminished by taxes or high commissions from entities like Coinbase and Binance. Conversely, this leaky bucket can function as a spending mechanism, particularly benefiting institutions that take a cut of staking yields without holding the underlying assets. This situation underlines the dynamics within Solana's economic model, signifying continued discussion and analysis are needed for future proposals.

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