Solana Inflation
Unfortunately, likely opposite to what most reading this article would want to hear, Solana is not deflationary.
In fact, SOL was one of the highest inflators of the past three years.
In January 2021, the Solana coin inflated from 46.57 million SOL to 261.9 million SOL in a single month.
This means the supply increased by over five times. Since then, the newly issued SOL has increased supply by another 25%.
Anyone looking for a sensible level of inflation should certainly not consider Solana, with plenty of much better tokenomics from many other cryptocurrencies.
Analysts expect a bullish trend to come soon for all cryptocurrencies, including SOL, but it is essential to account for the selling pressure that this inflation puts on the price action. Bullish Solana targets for 2025 range between $32 to $42, a percentage increase way below that of other cryptocurrencies.
What are the other options?
A deflationary set of tokenomics is much more preferential than this grotesque level of token creation.
One example of the perfect set of tokenomics comes from Avorak AI. Starting with a fixed supply of 40 million AVRK, the total amount can never exceed this number.
On top of this, the project’s revenue is generated from AVRK being a credit to use the Avorak system, a full array of AI products set to rival well-established names.
This revenue system means that those wishing to access artificial intelligence products, such as image generation, AI writing, and smart trading bot, will need to buy AVRK. This exerts a buy pressure on the token rather than the selling pressure that an inflationary supply creates.
Going two steps further, those holding AVRK are entitled to a share of this revenue live. As people pay their credits, it is automatically routed between the team and AVRK holders. 2% of this revenue is also sent straight to the burn address.
This means the token is fully deflationary.
AVRK holders’ equivalent share of the market cap increases as the circulating supply decreases. This means their right to revenue share increases over time.
This kind of tokenomics model with external revenue creation is the perfect model for long-term investors, with analysts expecting incredible returns over the next two years from Avorak.
Want to learn more about Avorak AI?
Website: https://avorak.ai
Whitepaper: https://avorak-labs-and-technology.gitbook.io/avorak-a.i-technical-whitepaper/
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
Image Source: valedol/123RF // Image Effects by Colorcinch
