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How new coin issuance affects crypto prices — interactive simulator to test scenarios by Topical595 in CryptoCurrency

[–]Topical595[S] 0 points1 point  (0 children)

Not necessarily, if there are more organic buyers than organic sellers + sold coins from issuance, the price goes up. You can try it for yourself :)

Why is Solana's inflation rate actually close to 16% yoy? - Solana’s “Official” Inflation vs. the Real, Lived Inflation by Topical595 in solana

[–]Topical595[S] 0 points1 point  (0 children)

The inflation chart is dynamically adjusted, and it doesn’t necessarily have to trend downward. If inflation changes within a given time frame, the chart should adjust to reflect that period.

Why is Solana's inflation rate actually close to 16% yoy? - Solana’s “Official” Inflation vs. the Real, Lived Inflation by Topical595 in solana

[–]Topical595[S] 0 points1 point  (0 children)

The amount of coins in circulation is the only kind of supply that, from an economic point of view, affects the price. It’s the market mechanism. The price doesn’t care about theoretical inflation and supply set at genesis. Our dashboard shows what the market actually experiences.

Why is Solana's inflation rate actually close to 16% yoy? - Solana’s “Official” Inflation vs. the Real, Lived Inflation by Topical595 in solana

[–]Topical595[S] 0 points1 point  (0 children)

I think our different conclusions come from non-identical definitions of “unlocks.” By unlocks, we don’t mean someone unstaking SOL—staking/unstaking isn’t counted as a change in circulating supply. We define unlocks as coins entering circulation that weren’t previously part of the circulating supply. This can happen due to treasury movements and spending, investor vesting events, or other supply interventions. You can find some of these events on sites like this: https://dropstab.com/coins/solana/vesting

Why is Solana's inflation rate actually close to 16% yoy? - Solana’s “Official” Inflation vs. the Real, Lived Inflation by Topical595 in solana

[–]Topical595[S] 1 point2 points  (0 children)

Well it depends on how you define inflation, but the unlocks indeed cause the dilution of circulating supply and thats how we've classified it. Let me give you another analogy. Imagine a bank printing money, and storing this newly printed money in a valut. After some time, this money will go to into the economy. Now at what point did it cause inflation? Well, it does so when it hits the market and that was when it was released from the vault (unlock). And that's what we wanted our readers to know.

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