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Crypto Investors: See SOLANA Beneath the Hood. Bad Tech & Bad Investment

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Crypto Investors: See SOLANA Beneath the Hood. Bad Tech & Bad Investment

TUE MARCH 19: Only 7 of Solana's last 50 transactions finalized without slippage or liquidity issues.

Source: solanabeach.io

Solana contracts have returned FAIL errors on 50% to 80% of transactions this week. You experience them as order delays and frustration.

Most share a common issue: Low TVL + Dry liquidity = Big slippage problems

Solana's low TVL is its biggest problem

On Monday, SOL Dex Volume totaled $2.8B vs Ethereum's $2.0 Billion.

The #1 reason Sol transactions get delayed is lack of liquidity. This increases volatility and even small swaps impact price. The price moves outside your slippage parameter which results in a long wait or error fail.

TVL impacts liquidity which determines price volatility.

Low TVL = Low liquidity.

https://preview.redd.it/09xa5bzsqfpc1.png?1600&format=png&auto=webp&s=b8e15dea0ed350edde9c2202eb2c67a8388339d2

TVL Raking

  1. Ethereum - $46.8B
  2. Solana - $3.7B

Solana attempts to maintain the #1 txn volume position with only 8% of Ethereum's liquidity.

This is why Solana transactions fail at high rates.

Why doesn't Solana's TVL match Ethereum's?

No serious project will build on this

  • Has gone down 11 times in 2 years
  • FTX & Solana affiliation
  • Alameda owns 8% of SOL supply that unlocks next year

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Solana's Debasement Strategy

21.47% annual inflation

Chart captures Solana's 69% inflation over 3-year period

Solana #1 by issuance rate percentage

775 Million SOL by 2032

Solana Foundation has scheduled SOL's issuance schedule through 2032. By that time, SOL will circulate 775 Million coins.

775 Million SOL by 2032

But what about the schedule? And what does a year mean?

https://preview.redd.it/ci38bebvw7pc1.png?1312&format=png&auto=webp&s=624b2fbd09b15be10678447e24a7c25c87bc89f8

Solana's annual inflation rate is currently 5.515% and will decrease by 15% every year.

On Planet Sol, a year spans 180 epochs. 1 epoch = 2.5+ days. Epoch years range 450 to 630 Earth days. See the green highlighted section above. By expanding the definition of a year, you give yourself wide margin to reach the calculations you require. All just by changing the meaning of year.

The yellow highlighted area tells the truth.

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Hodlers Yield

https://preview.redd.it/rf3n3v4mu7pc1.png?932&format=png&auto=webp&s=3515cd5dad818e57070c4b02d613e52c77e8d4d4

Non-Stakers pay Stakers

Dig deep and see the mechanism at work. The network is kept afloat by non-staking SOL holders. The network extracts maximum value through systematic daily issuance of new SOL. Solana shields validators and stakers from inflation by awarding them all new issuance. 50% of fees go to validators. That's why the lavender line is on the top-side. The rest is covered by non-stakers. This ensures that non-stakers bear disproportionate inflation exposure. Its also necessary because the fees collected aren't enough. Non-Stakers pay Stakers and effectively pay to keep the network running.

Its no different than the Government paying debts by printing money. They clear their debt but we get hit with the inflationary after-effect. Solana does this to non-stakers.

Keep your money in BTC or ETH. Long term, SOL is a terrible investment choice.

___

Someone on the sub went onto CT and called the Solana Ringer. When they start with ad-hominem attacks, it means their argument is lost.

https://preview.redd.it/iyzsgwybmfpc1.png?1292&format=png&auto=webp&s=c14139fb61488e01129b58f247afec706885b159

submitted by /u/ajnsd619
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