Overview

Click to expand overview
Instead of a fixed inflation schedule, the proposal would implement “smart emissions,” adjusting SOL issuance dynamically based on staking participation. With a target Solana surpasses Ethereum in staking market cap with $53.15 billion, driven by higher staking yield and 65% of supply staked. Critics question Solana’s security due to no Investors are preparing for an uptick in selling pressure with the release of 80 million SOL coins from staking contracts. Fortunately, the aforementioned amount was not Solana (SOL) was one of the worst affected tokens due to the collapse of FTX. Now investors have another problem coming their way with 80

Is Solana doomed? Investors are bracing for a potential downturn as 80 million SOL coins are unlocked from staking contracts. This development has sparked fears that it may cripple the project. Learn more about the potential impact.

Solana\'s Impending 80 Million SOL Unlock: A Death Knell?

Solana (SOL) has faced its share of challenges. Recall how Solana (SOL) was one of the worst affected tokens due to the collapse of FTX. Now, investors have another problem coming their way: 80 million SOL tokens becoming available after unstaking. The aforementioned amount was not insignificant, and the unlocking event fuels concerns about increased selling pressure. Critics question Solana’s security due to these large concentrations.

Why the Worry About 80 Million Unlocked SOL?

The release of 80 million SOL coins from staking contracts presents a significant supply increase in the open market. This influx could depress prices if a large percentage of these tokens are sold. Investors are preparing for an uptick in selling pressure with the release of 80 million SOL coins from staking contracts, raising questions about the long-term viability of Solana.

Smart Emissions: A Possible Solution for Solana?

Recognizing the risks associated with a fixed inflation schedule, Solana is exploring alternative approaches. Instead of a fixed inflation schedule, the proposal would implement “smart emissions,” adjusting SOL issuance dynamically based on staking participation. This approach aims to balance supply and demand, mitigating the potential negative impacts of large-scale unstaking events.

Solana vs. Ethereum: The Staking Landscape

Despite the current concerns, Solana has achieved considerable success in the staking market. With a target Solana surpasses Ethereum in staking market cap with $53.15 billion, driven by higher staking yield and 65% of supply staked. However, this dominance also highlights the potential vulnerability to large-scale unstaking events, as the impending release of 80 million SOL demonstrates.

The Future of Solana: Will It Survive?

The unlocking of 80 million SOL presents a critical test for the Solana network. Whether Solana can withstand the potential selling pressure and maintain its position in the market remains to be seen. The adoption of "smart emissions" and the overall health of the Solana ecosystem will play crucial roles in determining its ultimate fate. Monitor developments closely, as the coming weeks and months will be pivotal for Solana\'s future.

Top Sources

Related Articles