Solana News: Variable Emission Model Proposal to Manage Inflation

Solana has introduced a groundbreaking proposal, SIMD-0228, aimed at managing inflation through a variable emission model. This innovative approach adjusts token issuance based on the staking participation rate, ensuring network security and incentivizing stakers and validators.

Solana Proposes Variable Emission Model to Curb Inflation

Solana has introduced a new proposal, SIMD-0228, which suggests a market-oriented solution to manage inflation through a variable emission model. This model adjusts based on the staking participation rate, calculated by the amount of staked SOL. If the staking participation rate falls below the target of 50%, new token issuance will increase to incentivize stakers and validators, thereby securing the network. Conversely, if the participation rate exceeds the target, token issuance is restricted to cap the inflationary rate. This approach aims to address the ongoing challenges of tokenomics and inflation in distributed cryptocurrency networks.

Solana Validators Approve Proposal to Redirect Priority Fees

In mid-last year, Solana validators approved proposal SIMD-0096, which removed the 50% burn mechanism for priority fees. This decision marks a significant shift in the network's fee structure and validator incentives, reflecting ongoing adjustments to optimize network performance and economic sustainability.

Tapestry Secures $5.75M Series A Funding to Transform Solana-Powered Social App Development

Tapestry, a social infrastructure protocol for the Solana ecosystem, has successfully closed a $5.75 million Series A funding round. This round was co-led by Union Square Ventures and Fabric Ventures, with additional participation from Stellation Capital, Slow, and Foresight Ventures. The funding will accelerate the development of Tapestry’s Solana-based social graph and AI creation platform, which aims to democratize app creation by enabling anyone to develop and deploy social applications using simple prompts. This initiative is set to create an open, permissionless social graph that could challenge major social media platforms.

Solana ‘Bull Case’ Forecasts $6,636 Price Target By 2030, Crypto Firm Says

A recent report by crypto index fund management firm Bitwise outlines varying price projections for Solana (SOL) based on its adoption and scalability improvements. According to the report, the ‘bull case’ scenario could see SOL’s price soar to $6,636 by 2030. Solana, currently the sixth-largest cryptocurrency by market capitalization, has experienced a volatile few years. The digital asset was heavily impacted by the FTX collapse, plummeting from its previous all-time high (ATH) of $250 in November 2021 to a low of $9 in November 2022. However, despite the bear market triggered by the FTX debacle, SOL staged an impressive recovery, achieving a new ATH of $263 in November 2024. Bitwise’s report suggests that SOL’s growth potential remains significant in the coming years.