SOL Inflation Cut Proposal Unveiled

Multichain Capital Proposes Dynamic SOL Emission Model

• Multichain Capital partners Tushar Jain and Vishal Kankani propose a dynamic emission model for Solana’s SOL.
• The current fixed-rate model, established in 2021, is criticized for not adapting to market conditions.
• The proposal introduces “Smart Emissions,” adjusting SOL issuance based on staking participation.
• Emissions would decrease when stake participation exceeds 50%, targeting a stable rate of 1.5%.
• SOL stakers earned 2.1 million SOL (approximately $430 million) in MEV in the fourth quarter.

The proposal aims to reduce unnecessary inflation by dynamically adjusting emissions based on network activity, with a target of maintaining a stable emission rate of 1.5% when staking participation is high.