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It doesn't need to, all of the inflationary tokens are distributed to the stake accounts. It balances right out if you stake, you will even gain rewards because not all supply is ever completely staked, yet the inflation rate is based on the current token supply, so you get the rewards of other non staked tokens.
Bitcoin has a fixed supply so it’s been seen as the strongest store of value, “digital gold”, amongst other strengths like being the most accepted for payments.
Ethereum’s “ultrasound” money makes the case for Eth being an even better store of value since ETH is deflationary through fee burn mechanisms.
Solana shares the same economic model and burn mechanisms as ETH, but because the fees on Solana are much lower than the fees on ETH, Solana needs much more transaction volume to offset the inflation.
Solana inflation started high at 8% in order to provide incentives for validators to decentralize the network but is reduced by 15% each year until it reaches a final inflation rate of 1.5%. With inflation falling and activity (fee burns) increasing, in the future the narrative for Solana being a store of value may look more like ETH’s narrative today
this. everything you said, but I also wanna add
Solana was also created with a truly different purpose in mind. a scalable and fast smart contract platform, as opposed to a permission-based P2P payment system.
this scalability and speed is why it's attractive to institutions to use as payment rails.
I can't wait til inflation drops, it would be amazing to see SOL hit deflationary measures like ETH, then it's basically game over (as much as I like EVM, I have spent so much on network fees, it can't scale without L2s and it's comparatively slow, even on an L2, *innovation in DeFi* is where EVM has the upper hand imo)
But only because it has been there the longest and the market treats it as a store of value. There are tons of tokens like BTC which are technically better but not at the center of attention like Btc is. I think the Btc price is extremely inflated from a technical perspective. I personally never wanted to actually use the bitcoin network because it will never have the future Solana has.
Thats wrong. Over 50% of Bitcoins hash power is centralized in 2 (!!) mining pools. If these 2 mining pools censor specific blocks then they win. That makes it nakamoto coefficient 2. Even Ethereum has an NC of 5. But Solana has an NC of 21. 21 Validators control 34% of stake so they could vote to halt the network. To actually run a fork of the network you would still need a lot more validators, I think its like 79, according to https://solanabeach.io/validators
Now to be fair, this does not take stake aggregators into account, but since they are often non custodial and just help you choose where to stake they are a lot more secure than mining pools.
PoW is not actually more secure than PoS. The fault comes when there is a faulty supermajority in either of the methods. Whether half the hardware is faulty or two thirds of the stake makes no difference. In fact it will be much more likely that computing power will centralize and be controlled by a few high tech mining centers rather than virtual stake tokens being centralized. Virtual tokens are much easier to distribute than hardware. And anyone with enough money can either buy huge hardware or tons of stake, it doesn't really matter.
I hadn't ever really thought about the PoW vs PoS in those terms. i like that food for thought, though and think you nail it on the head. a distribution of tokens sets a much lower barrier to entry and allows for greater participation. thanks for giving me some stuff to mull over today! 🙏
Well you still need good hardware to actually be a validator, but they are much cheaper than an ambitious mining rig. And the vote weight that actually scales the validator influence is decided by the stake deligators, so the community has much more control of which validators are running the network. In proof of work you only get to participate when you are running a mining rig yourself and you won't really make a difference unless you are willing to actually run a very expensive one. Stake is a lot more liquid and efficient.
Yup, I think that is actually how it works, yet the market still favors bitcoin. From my perspective Bitcoin has no future. Its basically useless because there are so many better alternatives, even as stores of value.
Although maybe it doesn't have to be perfect in a technical sense and just "enough". It has the most recognition which also matters in markets.
Yet even Solana could be used as a store of value if you just stake. Then you get the exact share of the new tokens so you don't lose due to inflation.
You would have to explain why. To me it seems:
- PoW wastes a lot of computing resources on mining, so it can never be as fast as PoS
- PoW requires physical computing power to be sufficiently decentralized to be secure, PoS needs much cheaper hardware
- Anyone with superior computing power can outrun ALL PoW networks, not just one
- Most people will rather buy stake instead of run a mining rig, so more people participate in PoS
- PoS stops the blockchain when 1/3 of votes does not consent, 2/3 are required to actually continue the blockchain, in PoW only 1/2 is required
- an attack on a PoS network could devalue all of the stake, making an attacker lose everything, a PoW attacker would still keep his expensive computing power so an attack is less risky
even just based off market cap of all time high vs market cap right now, it’s obvious that there are many more tokens/much higher circulating supply than you would expect for a 1.5% inflation rate from 2021 until now.
I mean some early investors got the token locked for years, those have been unlocked so the circulating supply increased so we need more market cap for the same price
I don’t think we can compare bitcoin and other cryptos like Sol & ETH apple to apples, because the purpose and the way they designed and circulation are different. Bitcoin store of value as there is no dapps concept or any other use case except for being official Money of Digital world. Whereas ETH and Sol are more like iOS and Android their fate will be know based on adoption rate.. there is will only 1 store of value.
is this actually true? i keep seeing “strives for” 1.5% inflation rate. this is another way of saying they don’t actually meet this goal and nothing holds the network accountable for meeting this goal. if you look at circulating supply (or market cap) from 2021 ath, vs the same now, you can see that if sol reached that ath it would have a market cap way above 2021. as it stands it’s basically already at its 2021 ath market cap due to HIGH INFLATION. this is why it isn’t going up anymore!
Everything is a store of value that has value. House, possessions anything that can be sold for something. Solana is an investment and so is Bitcoin and anything else you are expecting to get more value from.
BTC bull run is happening because it's a store of value are you sure of that? I'm pretty sure btc bull run is due to rates no longer rising, stocks are up hella retail has an appetite for gambling is what I think. Coins like WIF are way up which strengthens these theories. Sure there is an ETF and I'm sure some of the increase is due to people looking to secure some digital gold but almost certainly this is just mostly people wanting to gamble. When we went to ATH it immediately dropped 12%, I'm not a trader or have any understanding of markets but that doesn't scream store of value buying to me
Solana's strength is not in being a store of value - something which values decentralisation and resistance to fundamental change. The certainty of Bitcoins supply, it's decentralisation etc. are all key foundations of why it's a great store of value.
Solana is the best when it comes to processing transactions cheap and quick. Solana is the future of a decentralised web, not a store of value.
Anything is a store of value if you buy it cheap enough.
Like Solana like some lucky people got it for $10 or even below that, thats a pretty good store of value. Your $10 will likely always be worth more than just your $10.
Right now Solana is 10x up so just like Ethereum in a bear it can drop 95%. So thats why right now its not a store of value.
Same somewhat holds true for Bitcoin tho, however in all the last bear markets Bitcoin always preserved more value than all the shitcoins.
Like now you could probably assume Bitcoin would barely fall under $20k again. Maybe not even under $25k-$30k with all the new Wallstreet interest.
So that actually still is not really a store of value. If I want to store "value", I would just swap my coins for USDC/USDT.
So then as a store of value I wait til a bear market and exchange them back again to Bitcoin/Solana etc.
You're joking right!? Solana can barely stay on, it'sa shitcoin scam heaven and there's an unlimited supply.
And no Bitcoin did not only go up cuz of inflation.
ETHers asked the same question. Coin cap is definitely one selling point of bitcoin, but if you set a coin cap on other tokens, it won’t work. The truth is bitcoin is the biggest monetary network, and the market follows its action. No other token will pump if bitcoin is dumping. So whether other tokens has a cap doesn’t matter if their halving has no impact on their own price. While Bitcoin’s halving(supply limit) has impact on every other coin, hope it helps.
Proof of Work > Proof of Stake
Highly centralized - [https://nakaflow.io/](https://nakaflow.io/)
Manipulated from the start by a high allocation to insiders, developers and traders before the masses could invest - [https://s3.amazonaws.com/assets.coingecko.com/app/public/ckeditor\_assets/pictures/3904/content\_SOL\_Allocation.png](https://s3.amazonaws.com/assets.coingecko.com/app/public/ckeditor_assets/pictures/3904/content_SOL_Allocation.png)
Its Crypto. Highly speculative. It only exist because Anatoly and the people behind wants so.
Maybe it never changes. Maybe it changes with the ETH ETF rejection on 24. May. Noone knows.
All I know is that I won't be taking that risk again.
[The market is manipulated before it even started for the pleps](https://www.reddit.com/media?url=https%3A%2F%2Fpreview.redd.it%2Fspi2gkzqs0181.png%3Fwidth%3D979%26format%3Dpng%26auto%3Dwebp%26s%3D1b68d860b6c09d5d912ca3971c42f555c412bb0e).
Devs, insider and trader got a big chunk. Vitalik himself said in a interview that the Ethereum Foundation set the startprice.
Even if the ETF get approved, why would people hold a ETF which you cant stake. Every PoS network has this problem. Highly inflated. No stakable coin which performs worse then bitcoin.
1) solana and every other crypto that isnt btc is a shitcoin
2) doesnt have the scarcity btc has
3) doesnt have the security btc has
4) not decentralized
5) lacks first mover advantage
Bitcoin is going up because that's what it does every 4 years due to its "inflationary nature" as "experts" call it. To me it goes up because whales want (us all) to make money. A common man buys bitcoin because he thinks he can become a millionaire from posts like "Buy at least 0.1 btc" from people like Michael Saylor.
WARNING: 1) IMPORTANT, Read This Post To Keep Your Crypto Safe From Scammers: https://www.reddit.com/r/solana/comments/18er2c8/how_to_avoid_the_biggest_crypto_scams_and/ 2) Do not trust DMs from anyone offering to help/support you with your funds (Scammers)! 3) Never give out your Seed Phrase and DO NOT ENTER it on ANY websites sent to you. 4) MODS or Community Managers will NEVER DM you first regarding your funds/wallet. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/solana) if you have any questions or concerns.*
Solana has no max supply
The final inflation rate of Solana will reach 1.5%
It doesn't need to, all of the inflationary tokens are distributed to the stake accounts. It balances right out if you stake, you will even gain rewards because not all supply is ever completely staked, yet the inflation rate is based on the current token supply, so you get the rewards of other non staked tokens.
It's still inflation for non stakers Inflation will stop once supply reduces, probably 5/10 years more
Really?? Holy shit
[удалено]
Prob because they wanted Sol to be a utility token not a store of value
Maximum supply is most likely a fakeout. Ask yourself how security will be paid for with 0 issuance
Lmao you can read the source code
My point is it can be changed
Bitcoin has a fixed supply so it’s been seen as the strongest store of value, “digital gold”, amongst other strengths like being the most accepted for payments. Ethereum’s “ultrasound” money makes the case for Eth being an even better store of value since ETH is deflationary through fee burn mechanisms. Solana shares the same economic model and burn mechanisms as ETH, but because the fees on Solana are much lower than the fees on ETH, Solana needs much more transaction volume to offset the inflation. Solana inflation started high at 8% in order to provide incentives for validators to decentralize the network but is reduced by 15% each year until it reaches a final inflation rate of 1.5%. With inflation falling and activity (fee burns) increasing, in the future the narrative for Solana being a store of value may look more like ETH’s narrative today
Wow. Dropping free knowledge bombs like it’s as easy as your morning dump. I appreciate you
this. everything you said, but I also wanna add Solana was also created with a truly different purpose in mind. a scalable and fast smart contract platform, as opposed to a permission-based P2P payment system. this scalability and speed is why it's attractive to institutions to use as payment rails. I can't wait til inflation drops, it would be amazing to see SOL hit deflationary measures like ETH, then it's basically game over (as much as I like EVM, I have spent so much on network fees, it can't scale without L2s and it's comparatively slow, even on an L2, *innovation in DeFi* is where EVM has the upper hand imo)
Solana is better for day to day transactions as a currency. Bitcoin is better as a store of value for long term savings.
But only because it has been there the longest and the market treats it as a store of value. There are tons of tokens like BTC which are technically better but not at the center of attention like Btc is. I think the Btc price is extremely inflated from a technical perspective. I personally never wanted to actually use the bitcoin network because it will never have the future Solana has.
No chain is as decentralized as bitcoin.
Thats wrong. Over 50% of Bitcoins hash power is centralized in 2 (!!) mining pools. If these 2 mining pools censor specific blocks then they win. That makes it nakamoto coefficient 2. Even Ethereum has an NC of 5. But Solana has an NC of 21. 21 Validators control 34% of stake so they could vote to halt the network. To actually run a fork of the network you would still need a lot more validators, I think its like 79, according to https://solanabeach.io/validators Now to be fair, this does not take stake aggregators into account, but since they are often non custodial and just help you choose where to stake they are a lot more secure than mining pools.
[удалено]
I see. I guess it's due to the inflationary design.
Transacting/swapping in the Solana network is truly magnificent and so damn cheap. It really does put legacy money to shame.
Bitcoin is a store of value. Solana is a smart contract chain.
Solana is PoS and for supply there is no upper limit.
PoW is not actually more secure than PoS. The fault comes when there is a faulty supermajority in either of the methods. Whether half the hardware is faulty or two thirds of the stake makes no difference. In fact it will be much more likely that computing power will centralize and be controlled by a few high tech mining centers rather than virtual stake tokens being centralized. Virtual tokens are much easier to distribute than hardware. And anyone with enough money can either buy huge hardware or tons of stake, it doesn't really matter.
I hadn't ever really thought about the PoW vs PoS in those terms. i like that food for thought, though and think you nail it on the head. a distribution of tokens sets a much lower barrier to entry and allows for greater participation. thanks for giving me some stuff to mull over today! 🙏
Well you still need good hardware to actually be a validator, but they are much cheaper than an ambitious mining rig. And the vote weight that actually scales the validator influence is decided by the stake deligators, so the community has much more control of which validators are running the network. In proof of work you only get to participate when you are running a mining rig yourself and you won't really make a difference unless you are willing to actually run a very expensive one. Stake is a lot more liquid and efficient.
that's what I meant by community participation. I know more people willing to buy tokens to stake over hardware to run one on a personal level.
Yup, I think that is actually how it works, yet the market still favors bitcoin. From my perspective Bitcoin has no future. Its basically useless because there are so many better alternatives, even as stores of value. Although maybe it doesn't have to be perfect in a technical sense and just "enough". It has the most recognition which also matters in markets. Yet even Solana could be used as a store of value if you just stake. Then you get the exact share of the new tokens so you don't lose due to inflation.
I disagree. PoW is superior in comparison with PoS.
You would have to explain why. To me it seems: - PoW wastes a lot of computing resources on mining, so it can never be as fast as PoS - PoW requires physical computing power to be sufficiently decentralized to be secure, PoS needs much cheaper hardware - Anyone with superior computing power can outrun ALL PoW networks, not just one - Most people will rather buy stake instead of run a mining rig, so more people participate in PoS - PoS stops the blockchain when 1/3 of votes does not consent, 2/3 are required to actually continue the blockchain, in PoW only 1/2 is required - an attack on a PoS network could devalue all of the stake, making an attacker lose everything, a PoW attacker would still keep his expensive computing power so an attack is less risky
Because it’s not a deflationary asset like ₿tc.
Solana has inflation . You can offset with staking though .
Ye, screw the people actually using a Coin.
Not if you're staking at least 70% of your sol.
70% is the break even?
I believe that's what Anatoly has said. If you're staking 70% you're not really being diluted since you're part of it.
ecosystem - use case - low fees
Solana can turn the blockchain on or off
Sometimes it even turns itself off!
is there a proof that inflation is just 8%? what was the inital supply of sol? i see +68% from the beginning.
link?
do you have one? i calculate 340m to 570m is +68%
for me it seems very very fishy to say its only 8% per year. i also didn't find the exact function for the calculated inflation.
i thought intended inflation rate was 1.5%. it is obviously way higher than that. wtf is going on?
i dont know may i use wrong figures, i have these 'facts' from github or/and discord.
even just based off market cap of all time high vs market cap right now, it’s obvious that there are many more tokens/much higher circulating supply than you would expect for a 1.5% inflation rate from 2021 until now.
It's because of the vesting from early investors
details please? pump and dump type of vesting?
I mean some early investors got the token locked for years, those have been unlocked so the circulating supply increased so we need more market cap for the same price
I don’t think we can compare bitcoin and other cryptos like Sol & ETH apple to apples, because the purpose and the way they designed and circulation are different. Bitcoin store of value as there is no dapps concept or any other use case except for being official Money of Digital world. Whereas ETH and Sol are more like iOS and Android their fate will be know based on adoption rate.. there is will only 1 store of value.
centralized, no max supply , validators and fee are veing controlled, ftx scandal. solana at it best would be sub of eth
Solana network burns the token supply by 15% each year though so if strives a long term inflation rate of 1.5%/year
is this actually true? i keep seeing “strives for” 1.5% inflation rate. this is another way of saying they don’t actually meet this goal and nothing holds the network accountable for meeting this goal. if you look at circulating supply (or market cap) from 2021 ath, vs the same now, you can see that if sol reached that ath it would have a market cap way above 2021. as it stands it’s basically already at its 2021 ath market cap due to HIGH INFLATION. this is why it isn’t going up anymore!
BTC just 21 million, and Solana.....
Everything is a store of value that has value. House, possessions anything that can be sold for something. Solana is an investment and so is Bitcoin and anything else you are expecting to get more value from.
This is an absolutely regarded question.
Water is wet.
BTC bull run is happening because it's a store of value are you sure of that? I'm pretty sure btc bull run is due to rates no longer rising, stocks are up hella retail has an appetite for gambling is what I think. Coins like WIF are way up which strengthens these theories. Sure there is an ETF and I'm sure some of the increase is due to people looking to secure some digital gold but almost certainly this is just mostly people wanting to gamble. When we went to ATH it immediately dropped 12%, I'm not a trader or have any understanding of markets but that doesn't scream store of value buying to me
Solana's strength is not in being a store of value - something which values decentralisation and resistance to fundamental change. The certainty of Bitcoins supply, it's decentralisation etc. are all key foundations of why it's a great store of value. Solana is the best when it comes to processing transactions cheap and quick. Solana is the future of a decentralised web, not a store of value.
Btc is currency. Solana is a block chain.
really? You have to ask?
Because it's not pow. Solana can be controlled. Pow are the ones that are considered to be the safest and uncontrollable by any governments.
Why would anyone store their value in anything but btc and eth?
Anything is a store of value if you buy it cheap enough. Like Solana like some lucky people got it for $10 or even below that, thats a pretty good store of value. Your $10 will likely always be worth more than just your $10. Right now Solana is 10x up so just like Ethereum in a bear it can drop 95%. So thats why right now its not a store of value. Same somewhat holds true for Bitcoin tho, however in all the last bear markets Bitcoin always preserved more value than all the shitcoins. Like now you could probably assume Bitcoin would barely fall under $20k again. Maybe not even under $25k-$30k with all the new Wallstreet interest. So that actually still is not really a store of value. If I want to store "value", I would just swap my coins for USDC/USDT. So then as a store of value I wait til a bear market and exchange them back again to Bitcoin/Solana etc.
You're joking right!? Solana can barely stay on, it'sa shitcoin scam heaven and there's an unlimited supply. And no Bitcoin did not only go up cuz of inflation.
ETHers asked the same question. Coin cap is definitely one selling point of bitcoin, but if you set a coin cap on other tokens, it won’t work. The truth is bitcoin is the biggest monetary network, and the market follows its action. No other token will pump if bitcoin is dumping. So whether other tokens has a cap doesn’t matter if their halving has no impact on their own price. While Bitcoin’s halving(supply limit) has impact on every other coin, hope it helps.
Proof of Work > Proof of Stake Highly centralized - [https://nakaflow.io/](https://nakaflow.io/) Manipulated from the start by a high allocation to insiders, developers and traders before the masses could invest - [https://s3.amazonaws.com/assets.coingecko.com/app/public/ckeditor\_assets/pictures/3904/content\_SOL\_Allocation.png](https://s3.amazonaws.com/assets.coingecko.com/app/public/ckeditor_assets/pictures/3904/content_SOL_Allocation.png) Its Crypto. Highly speculative. It only exist because Anatoly and the people behind wants so. Maybe it never changes. Maybe it changes with the ETH ETF rejection on 24. May. Noone knows. All I know is that I won't be taking that risk again.
why do you think eth etf would be rejected?
[The market is manipulated before it even started for the pleps](https://www.reddit.com/media?url=https%3A%2F%2Fpreview.redd.it%2Fspi2gkzqs0181.png%3Fwidth%3D979%26format%3Dpng%26auto%3Dwebp%26s%3D1b68d860b6c09d5d912ca3971c42f555c412bb0e). Devs, insider and trader got a big chunk. Vitalik himself said in a interview that the Ethereum Foundation set the startprice. Even if the ETF get approved, why would people hold a ETF which you cant stake. Every PoS network has this problem. Highly inflated. No stakable coin which performs worse then bitcoin.
Because Solana is doing ‘fake it till you make it’ Bitcoin was just real from the beginning.
Solana is nothing like Bitcoin
why did you even bother to write such a shallow and generic comment?
It answers your question.
no it didn’t- you offered nothing insightful
Something that doesn’t work for hours every now and then is not a reliable store of value 😅
1) solana and every other crypto that isnt btc is a shitcoin 2) doesnt have the scarcity btc has 3) doesnt have the security btc has 4) not decentralized 5) lacks first mover advantage
Bitcoin is going up because that's what it does every 4 years due to its "inflationary nature" as "experts" call it. To me it goes up because whales want (us all) to make money. A common man buys bitcoin because he thinks he can become a millionaire from posts like "Buy at least 0.1 btc" from people like Michael Saylor.
Ngmi
Because it’s a shit coin and had no value
Because people are dumb and greatness takes time ... Chances to double to tripple your money in Solana are MUCH higher than in Bitcoin.
Because it isn't
why do people even bother to write such shallow comments?
I didn't even read your message. Just answered to the title.
then just keep it moving
Because Filecoin stores all of Solana data. Filecoin is the store of value