Empire does not talk too much about SOL. Jeff and Jack have a much better grasp of Solana, as they are both far more knowledgeable about it. I’d even go so far as to say Jack’s sense of humor rivals mine… But I’m not sure I want him to hold that over my head.
However, I did a superficial dive into the SIMD-0228 lanes, because I was curious as to why some people were so upset about the proposal.
You can read Jeff and Jack’s reports on the SIMD by clicking here.
Carlos Gonzalez Campo from Blockworks Research answered the phone quickly and gave me all I needed to learn.
Basically: Solana’s inflation rate sits at 4.6% right now, which — some argue — is too high. The initial rate is 8%, and then it decreases by 15% a year (terminal rate in 2030 will be 1.5%).
Gonzalez Campo, who was in favor of this proposal due to his belief that its benefits were greater than any potential negatives, lost the resolution when the votes closed late yesterday night.
Gonzalez Campo, when asked about SOL and what it meant to him, said: “You continue to overpay for security and dilute naked SOL holders. SOL emissions also add selling pressure through what Max Resnick calls the ‘leaky bucket,’ defined as transfers lost due to taxes or middlemen with market power (e.g., validators like Coinbase or Binance that charge high commissions).”
He also said that the other side of this so-called “leaky bucket” is it can be “viewed as a distribution spend, especially to institutions” Which take a portion of the stake yield, but don’t expose themselves to the asset.
So, there you have it. A quick look at Solanaland. Would you like to know more about Solanaland? I would recommend reading the Lightspeed Newsletter this afternoon.
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