Solana Faces Continued Uncertainty Over Inflation Reduction Proposal

As the Solana blockchain community grapples with the aftermath of a rejected proposal aimed at reducing inflation, discussions about the network’s future are heating up. Here’s a closer look at the ongoing debate and its implications for the cryptocurrency’s future.

Solana Inflation Reduction Defeat: Could ‘Left Curve 228’ Be Next?

Three weeks after Solana validators rejected SIMD-0228, a proposal to shift issuance to a market-based mechanism and reduce inflation, the issue remains unsettled. The implementation of SIMD-0096 removed the priority fee ’burn,’ leading to concerns about overpaying for economic security through inflation. Many ecosystem participants share these concerns, and while there’s no immediate fix, discussions continue.

Grayscale Submitted S-1 Form for Solana ETF, But Staking Is Off the Table

Grayscale, the leading cryptocurrency asset manager, has officially submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) to convert its Solana Trust into an exchange-traded fund (ETF). However, this ETF will not include any Solana staking. The ETF, initially named Grayscale Solana Trust (SOL), will be listed on the NYSE Arca exchange and, if approved, will be rebranded as the Grayscale Solana Trust ETF.

Grayscale Moves Closer to Solana ETF with SEC Filing

Grayscale has filed a Form S-1 with the US Securities and Exchange Commission (SEC) to convert its existing Grayscale Solana Trust (GSOL) into a publicly traded ETF. Crypto traders on Polymarket predict an 83% chance of SEC approval for a Solana ETF before the end of the year, with a lower chance of 23% before July 31. If approved, the fund will be renamed the Grayscale Solana Trust ETF and listed on the NYSE Arca exchange.

Solana Crashes 15% as Whales Dump $46M—More Pain Ahead?

Solana’s price fell sharply this week due to increased selling pressure from whale activity. Four major wallets unstaked and transferred $46 million worth of SOL to exchanges within 24 hours. The largest transaction came from a wallet that moved $30.3 million worth of SOL alone. These aggressive market actions strengthened existing negative market forces, resulting in a substantial decrease in investor confidence.