T Sips🧃

Helius' Ichigo says Solana could avoid hundreds of millions of dollars in annual token issuance under an inflation proposal that passed in August "A lot of the unlocks are behind us. So what's this continued high issuance actually doing? It's like, okay, it's adding unnecessary sell pressure" "When you have sell pressure, depending on which jurisdiction you're in, you'd have to sell to cover a portion of taxes" "For example, some places, the US, staking rewards are treated as ordinary income. So you get staking rewards, you're gonna have to pay taxes on that" "So you end up selling SOL to these centralized exchanges like Coinbase and Binance, who are competitors to Solana. We're pushing the price down, we're paying taxes" "And so when you have people like governments, centralized exchanges, and custody providers taking significant cuts of staking rewards, even just a small reduction in issuance can save us hundreds of millions of dollars a year" "And getting rid of that sell pressure, we get rid of that persistent downward price pressure" "It's not all about number go up, but at the same time, it's this whole psychological thing of, okay, if we have very distorted market signals and we hinder fair price comparison, what does that say?" "If we had a publicly traded company who is executing a small share split every two days, most people would be like, 'What the hell is going on there?'"