Solana’s (SOL) Emission Schedule: Expect Supply to Increase 43% Over the Next 5 Years
Solana became one of the most hyped cryptocurrencies of the 2021–22 market cycle. That’s probably because it took users on an emotional roller coaster, spiking by 50,000 percent from its launch before declining — over just seven months — by roughly 90 percent. Will it be able to rise from the ashes? Based on the small number of tokens set to enter supply in the years ahead, it seems fairly likely.
Solana debuted in April 2020 as a Layer 1 protocol, launching at a price slightly below $1 before sinking to the 50-cent range. It peaked in November 2021 at more than $250. As of July 2022, it was flirting with a range between $20 to $40. The network began with 19.4 million tokens in circulation. The figure had increased by 326.1 million — or 1,680 percent — as of July 2022.
San Francisco-based Solana Labs, headed by CEO Anatoly Yakovenko, oversees the protocol’s development. It was enormously popular throughout the market’s 2021 bull run, and as of July, had attracted more than 350 projects — the largest of which was Gameta, which had more than 40,000 average daily users in July. That popularity made it the 9th largest crypto by market capitalization as of July 17, at $13.4 billion.
At the same time, that popularity has been a double-edged sword: Solana fans have become accustomed to frequent network outages produced by its inability to accommodate an overwhelming number of users.
July 2022 Circulation: 345.5 Million
As of July 17, there were 345.5 million Solana tokens in circulation, equal to 65.8 percent of a 525 million cap. With the token’s inflation rate as of July standing at 7 percent — paid on a supply of 394.7 million staked tokens — an additional 27.62 million SOL are set to enter circulation in the year ahead. Compared to some of its competitors among Layer 1 protocols — such as Avalanche (AVAX), which should see circulation rise 34 percent in the upcoming year — the figure is fairly small.
Inflation declines at a rate of 15 percent annually until it stabilizes at 1.5 percent. That should produce the following rates of growth in years ahead…
You can read the rest of this analysis on GoblinCrypto.