Solana Sucks: Factually-Based Reasons
2 min read
By the numbers, Solana is one of crypto’s worst projects.
SOL supply inflated 68% in three years.
SOL SUPPLY
Jan 2021: 261.9 Million
Feb 2024: 441.8 Million
180 Million New Sol spanning a 37-month timeframe.
Messari captures period in question
Solana’s posted inflation schedule is adrift from reality. The asterisk symbol is its only truthful piece of information. So let’s follow it and see where it leads.
EPOCH
From Solana Official Docs: Solana’s annual inflation is currently 5.515%. Note that this is an ‘epoch-year’, or ~ 180 epochs.
Okay now WTF is an epoch-year? An easier explanation than this.
MEANWHILE ON PLANET SOL
On Planet Sol, a year spans 180 epochs. 1 epoch = 2.5+ days. Epoch years range 450 to 630 Earth days. See for yourself.
Actual inflation rate will vary
But hold on. “Non-stakers pay stakers?” What’s that about? Merits a closer look.
How it works
New SOL issue pays Validators. Solana rewards remaining new issue to Stakers.
Problem: New SOL inflates currency and fee burn’s insufficient.
Solution: Reward shields Stakers from inflation. Non-Stakers get no reward. Non-Stakers pay for inflation. They become the yield for Solana stakers.
Non-Stakers Pay Stakers.
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