Fears Over Solana’s Economic Structure Called Baseless

Justin Bons, founder and CIO of Cyber Capital, recently defended Solana (SOL) against criticisms of its economic structure, which some have compared to the downfall of Terra Luna in 2022.

Bons dismissed these comparisons as inaccurate, arguing that Solana’s economics are robust and entirely distinct from Terra Luna’s flawed model.

In a detailed post on X, Bons explained that fears about Solana’s economic design are unfounded. He emphasized that Solana’s inflationary model, which includes a long-term inflation rate of 1.5% and a 50% burn rate on the base fee, ensures both sustainability and scarcity over time.

Bons likened Solana’s economic approach to those used by established blockchains like Bitcoin (BTC) and Ethereum (ETH), where an initial phase of high inflation gradually decreases as the network matures.

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One significant difference Bons highlighted is that Solana has implemented scalable architecture, unlike Ethereum, which continues to face scalability challenges. He also addressed concerns over the distribution of SOL tokens, asserting that Solana is in a better position compared to emerging blockchains like Aptos, Sui, and Sei.

Regarding changes to Solana’s fee structure, Bons clarified that only the priority fee burn was removed, while the base fee burn remains intact, ensuring the network’s continued efficiency. As of September 17, Solana showed signs of recovery, with its price rising by 1.13% to $132.49.

Alexander Stefanov