Today, Justin Bons, the founder and CIO of Cyber Capital, stepped up to defend Solana (SOL) against concerns over its economic design. Some critics have drawn parallels between Solana and the failed Terra Luna project, but Bons dismissed these comparisons as exaggerated and unfounded.
In a detailed post, Bons emphasized that SOL’s economic structure is fundamentally sound and distinct from Terra Luna’s flawed model. He argued that the fear-mongering surrounding Solana’s economics is baseless and labeled it as FUD, refuting claims that Solana is akin to Luna.
Bons highlighted Solana’s current inflationary model, which features a 1.5% long-term inflation rate and a 50% burn rate of the base fee, ensuring sustainability and scarcity. He noted that Solana follows economic principles similar to established blockchains like Bitcoin and Ethereum, with an initial inflation phase gradually decreasing over time.
Moreover, Bons pointed out that Solana’s design incorporates elements from Ethereum’s EIP-1559 and boasts scalability compared to Ethereum’s ongoing challenges in that area.
In addressing concerns regarding the distribution of SOL tokens, Bons argued that Solana’s upcoming unlocks are more favorable compared to other emerging blockchains like Aptos (APT), Sui (SUI), and Sei (SEI).
Bons clarified a user’s misconception about Solana’s burn rate, stating that only the priority fee burn was removed and highlighting that most fees come from the base fee, showcasing SOL’s ability to scale at the base layer.
At present, Solana’s price is experiencing a rebound, with the crypto registering a 1.13% gain to $132.49 on Tuesday, September 17.