Solana vs Terra Luna: Justin Bons’ clarification

Justin Bons defended Solana’s economic design, denying that it is similar to Terra Luna, which crashed in 2022. He noted that despite the overall bearish market, Solana’s price may have bullish momentum to recover.

Solana’s Economic Framework

Although SOL has fallen 2.21% in the past 24 hours, market concerns about its economic model are growing. Some critics have compared Solana to Terra Luna, arguing that the two have similarities. However, Bons said that such concerns are “unfounded FUD.”

He emphasized that Solana’s economic design includes a long-term inflation rate of 1.5% and a base fee burn rate of 50%, which helps maintain long-term sustainability and scarcity. Bons also pointed out that Solana’s economic model is similar to the principles of Bitcoin and Ethereum, and many blockchains have high inflation in the early days, which will gradually decline over time.

Against comparison

Bons believes that Solana's token economics are reasonable and cannot be compared to the Terra Luna debacle. He pointed out that Solana has higher scalability, which will bring more fee income. In addition, he mentioned that the distribution of tokens to be unlocked is relatively favorable and will not be biased towards insiders like other emerging blockchains.

He concluded: "SOL has an ideal economic design. If you don't admit this, you are deceiving yourself!"

Current price performance

Despite these concerns, Solana's price performance remains weak, and the RSI shows a bearish trend. However, the MACD line is above the signal line, and there is still hope for recovery.

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