Solana’s delivery shock: Will reduce inflation by 80% Fuel Sol’s next rally?

• Solana’s proposal, which aims to reduce sun inflation by up to 80%, has reached the quorum by 71.85% vote for.
• Will it make sun more deflationary over time?

Solana (sun) is deep in its most baisse -like bike, sliding from its $ 270 all the time to $ 213 at press time.

To counteract this, the developers promote the proposal SIMD-228, which is trying to lower solar inflation by up to 80%. With 71.85% of votes in favor, proposal has already reached Kvorum.

A successful implementation can sharpen Sol’s Supply Dynamics. But will this be enough to reverse the marketing entry?

Solana’s deflation model below focus

Sola’s Tokenomics follows a semi-deflation model, where some of the transaction fees are permanently incinerated, which gradually reduces the total supply.

This mechanism helps to counteract inflation and supports long -term price stability.

However, Solana’s transaction fees have dropped to a six -month low, according to one Ambcrypto ReportSignals a significant decline in demand for the chain.

Since Solana’s deflation pressure is directly bound to network activity, lower transaction volumes mean less tan – its ability to compensate inflation.

To address this, the SIMD-228 proposal aims to reduce solar inflation by reducing rewards. It is the primary way that the new sun -tokens enter circulation.

Currently, New Sol is issued at an annual rate of 6.8%, mainly through Set reward for validers.

SIMD-228 suggests that this interest rate lowers by up to 80%. In response, it would significantly limit the number of new tokens entering circulation.

Price influence and marketing term

At press time, Solana’s circulating supply of 509.38 million sun, with its price trade amounts to $ 124.78.

This means a market capitalization of $ 63.56 billion, which marks a sharp decline from its maximum period of $ 123 billion (ATH) in mid -January.

Solana’s declining valuation is largely due to reduced activity on the chain and a risk-off investor’s way of thinking.

The Sun/BTC couple has dropped to a two-year low and signal that traders still perceive sun as a high risk, high volatility asset.

With transaction fees at a six-month low, fewer sun symbols are burned, weakens its deflation model and adds pressure to the price.

If the SIMD-228 successfully lowers inflation while stimulating validators, it can increase confidence, improve supply dynamics and set the stage for the SOL next rally.

However, assumption and network use will remain critical for determining its actual effect.