Solana could soon become one of the most difficult to obtain tokens in the coming years. A new proposal from Solana developers has been announced that aims to double the current inflation rate.
If this update is approved, nearly 22 million SOL could be permanently removed from future supply.
With fewer new SOLs entering the market and demand continuing to increase, this update could set the stage for significant price increases.
Solana’s path to scarcity
A new proposal from the Solana development team aims to double the inflation rate and allow the network to reach the final inflation level of 1.5% in half the time it would normally take.
On the current schedule, it will take Solana about 6.2 years to reach its final low inflation level of 1.5%. But the proposed changes would shorten that journey to just 3.1 years.
And this is no small adjustment. According to the study, this rapid deinflation could prevent the creation of approximately 22 million SOL.
And as of today’s price, this equates to billions of dollars worth of tokens that will never see any selling pressure.
Solana aims to be not only fast, but economically disciplined
Solana already has a reputation for fast and intense activities. But this proposal shows that networks are looking for more than just performance. We want a disciplined economic system that rewards long-term faith, not just short-term participation.
Whether or not this proposal passes, Solana’s next chapter will reveal that the network will not rely solely on performance, but also on scarcity-driven stories that are strengthened over time.
Low supply + high demand = high price
After approval of this update, the price of SOL tokens is expected to rise as fewer SOL tokens will be created and the network continues to have more users, apps, and activity, increasing the demand for SOL while the supply decreases.
When this happens in any market, prices usually increase significantly. As a result, many analysts believe this offer could be a long-term driver for Solana’s price if scarcity takes hold.
However, Solana is already trading around $125.8 and has remained stable despite fluctuations in the overall crypto market.
