Solana Proposes Tokenomic Changes to Boost Coin Value

Solana is proposing changes to its tokenomics that could reduce coin supply and potentially boost the value of SOL. The proposals, SGP-0002 and SGP-0003, aim to slow new issuance and burn more coins with each transaction. This could be beneficial for holders, but validators who process transactions and earn newly issued coins may see their rewards decrease.

Last year, a similar proposal failed to pass due to opposition from smaller validators. The current proposals have cleared the 15% stake threshold for consideration, but it's unclear whether they will succeed this time around.

The main risk is that lower yields will discourage institutions from holding Solana. However, reforming its tokenomics could diminish one of the bear thesis's most convincing elements.