{"id":21350,"date":"2025-02-20T15:03:42","date_gmt":"2025-02-20T13:03:42","guid":{"rendered":"https:\/\/forklog.com\/en\/solana-inflation-jumps-by-30-after-simd%e2%80%910096-rollout\/"},"modified":"2025-02-20T15:03:42","modified_gmt":"2025-02-20T13:03:42","slug":"solana-inflation-jumps-by-30-after-simd%e2%80%910096-rollout","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/solana-inflation-jumps-by-30-after-simd%e2%80%910096-rollout\/","title":{"rendered":"Solana inflation jumps by 30% after SIMD\u20110096 rollout"},"content":{"rendered":"<p>Solana\u2019s (SOL) annual inflation rate rose by 30.5% after the platform implemented a new fee-distribution model, according to Blockworks researcher Carlos Gonzalez Campo.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1\/ What are the effects of SIMD 96 one week after going live?<\/p>\n<p>\u2014 SOL inflation is up<br \/>\u2014 Token holder net income is down<br \/>\u2014 Median priority fees remain unchanged<\/p>\n<p>Let&#8217;s dive into the data ? <a href=\"https:\/\/t.co\/Lg5HEZWvq5\">pic.twitter.com\/Lg5HEZWvq5<\/a><\/p>\n<p>\u2014 Carlos (@0xcarlosg) <a href=\"https:\/\/twitter.com\/0xcarlosg\/status\/1892181938770694418?ref_src=twsrc%5Etfw\">February 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On 12 February the network implemented <span data-descr=\"Solana IMprovement Document \u2014 a Solana improvement document\" class=\"old_tooltip\">SIMD<\/span>-0096. <a href=\"https:\/\/u1f987.com\/en\/news\/solana-proposal-simd-0096-to-allocate-priority-fees-to-validators\">Introduced<\/a> in May 2024, the proposal directs 100% of priority fees to validators, up from 50% previously.<\/p>\n<p>However, Gonzalez Campo noted that the amount of tokens burned daily fell from 17,700 SOL to 1,000 SOL. The rate at which coins are removed from circulation dropped below 1%.<\/p>\n<p>Annual inflation rose from 3.6% to 4.7%.<\/p>\n<p>The rollout of SIMD-0096 also hurt the share of <span data-descr=\"Real Economic Value \u2014 the real value of the asset adjusted for inflation\" class=\"old_tooltip\">REV<\/span> (fees and tips) distributed to token holders. The 30\u2011day average before the upgrade was 67%; after the change it dropped to 46%. For validators, the corresponding figure rose from 30% to 51%.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"402\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-1024x402.png\" alt=\"GkJErTjWcAA7XcW\" class=\"wp-image-252265\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-1024x402.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-300x118.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-768x301.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-1536x602.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/GkJErTjWcAA7XcW-2048x803.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: X.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSome people, myself included, argued that SIMD-0096 would lead to lower priority fees. That did not happen. Aside from the spikes caused by recent volatility events (<a href=\"https:\/\/u1f987.com\/en\/news\/what-to-know-about-donald-trumps-memecoin-surge-supply-and-industry-impact\">TRUMP<\/a>, LIBRA), the median SOL fee for expediting transactions has remained unchanged,\u201d the researcher conceded.<\/p>\n<\/blockquote>\n<p>He added that hopes in the Solana community now rest on SIMD-228. The proposal would reform the inflation mechanism by introducing a dynamic factor based on the amount of staked tokens.<\/p>\n<p>Solana has fallen more than 10% over the week and over 27% over the month. At the time of writing the asset trades around ~$174 (<a href=\"https:\/\/www.coingecko.com\/en\/coins\/solana\">CoinGecko<\/a>).<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"482\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25-1024x482.jpg\" alt=\"Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25\" class=\"wp-image-252266\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25-1024x482.jpg 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25-300x141.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25-768x362.jpg 768w, https:\/\/u1f987.com\/wp-content\/uploads\/Cryptocurrency-Prices-Charts-and-Crypto-Market-Cap-CoinGecko-Google-Chrome-25.jpg 1153w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Data: CoinGecko.<\/figcaption><\/figure>\n<p>By comparison, bitcoin has gained 1.2% over the past seven days and Ethereum 2.3%.<\/p>\n<h2 class=\"wp-block-heading\">Analysts strike an upbeat note<\/h2>\n<p>On 16 February, analyst Ali Martinez <a href=\"https:\/\/x.com\/ali_charts\/status\/1891194019541037315\">noted<\/a> that Solana\u2019s price had broken a key support level on the daily chart. He later spotted a positive signal: an inverse head-and-shoulders breakout on lower time frames. In his view, that sets up a move toward $180.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Solana?src=hash&#038;ref_src=twsrc%5Etfw\">#Solana<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> is breaking out of an inverse head-and-shoulders pattern on the lower time frames, setting up a potential 6% move toward $180! <a href=\"https:\/\/t.co\/9jHoNEu83U\">pic.twitter.com\/9jHoNEu83U<\/a><\/p>\n<p>\u2014 Ali (@ali_charts) <a href=\"https:\/\/twitter.com\/ali_charts\/status\/1892198199290454156?ref_src=twsrc%5Etfw\">February 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>An investor known as Lucky, who has 2.2m followers on X, also voiced confidence in an imminent breakout well above current levels.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> at $170 won&#8217;t last long; it looks poised for a significant rise!<\/p>\n<p>The <a href=\"https:\/\/twitter.com\/solana?ref_src=twsrc%5Etfw\">@solana<\/a> ecosystem is expanding rapidly, with massive trading volume and new, promising projects emerging daily.<\/p>\n<p>Honestly, <a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> is incredibly undervalued; the upcoming wave will be bigger than ever! ?\u2026 <a href=\"https:\/\/t.co\/iCwca7evmT\">pic.twitter.com\/iCwca7evmT<\/a><\/p>\n<p>\u2014 Lucky (@LLuciano_BTC) <a href=\"https:\/\/twitter.com\/LLuciano_BTC\/status\/1892205741412360314?ref_src=twsrc%5Etfw\">February 19, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe Solana ecosystem is expanding rapidly, trading volumes are massive, and new promising projects are emerging daily. Honestly, SOL is incredibly undervalued. The upcoming wave will be bigger than ever!\u201d he said.<\/p>\n<\/blockquote>\n<p>The trader known as OX <a href=\"https:\/\/x.com\/Trader_XO\/status\/1892520086654619982\">believes<\/a> the cryptocurrency will return to $190\u2014or even $210\u2014within \u201cthe next few weeks\u201d.<\/p>\n<p>Musician, producer and macro analyst MartyParty compiled a set of Solana price forecasts for 2025 from firms and influencers, ranging from $520 (VanEck) to $1,500 (Dami-DeFi).<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> price predictions for 2025 <a href=\"https:\/\/t.co\/Xo1sDlrCfz\">pic.twitter.com\/Xo1sDlrCfz<\/a><\/p>\n<p>\u2014 MartyParty (@martypartymusic) <a href=\"https:\/\/twitter.com\/martypartymusic\/status\/1892434085743632633?ref_src=twsrc%5Etfw\">February 20, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Following the hard fork <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-developers-activate-dencun-hard-fork-on-mainnet\">Dencun<\/a>, Ethereum has already seen inflation pick up. Traders nevertheless expect the SOL\/ETH ratio to keep moving against Solana amid a string of scandals involving meme coins issued on the network.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solana\u2019s (SOL) annual inflation rate rose by 30.5% after the platform implemented a new fee-distribution model, according to Blockworks researcher Carlos Gonzalez Campo. 1\/ What are the effects of SIMD 96 one week after going live? \u2014 SOL inflation is up\u2014 Token holder net income is down\u2014 Median priority fees remain unchanged Let&#8217;s dive into [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1159],"class_list":["post-21350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-solana-sol"],"aioseo_notices":[],"amp_enabled":true,"views":"47","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=21350"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/21349"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=21350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=21350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=21350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}