March 10, 2025
Inflationary Pressure
Lipinski highlighted the importance of moving away from arbitrary inflation schedules, which he believes have caused significant imbalances in the ecosystem. He argued that the current fixed emission schedule leads to high inflation rates.
Source: GitHub
These high rates, in turn, negatively affect the active use of Solana’s native token, SOL, within DeFi platforms. Moreover, this inflationary pressure results in a diminished value for SOL holders who are not participating in staking.
Supply & Demand
According to Lipinski, the existing model fails to account for the diverse and changing demands of the network, and the imbalance between supply and demand ultimately erodes the token’s utility and value.
To address these challenges, he proposed adopting a dynamic emission model that would be more responsive to fluctuations in staking participation.
Lipinski believes that by implementing this dynamic model, Solana could enhance both network security and capital efficiency. A better balance between inflation and staking could also incentivize greater participation in staking.
