From 422044f37548f0ba4937e7da34b1e7636eba2d5b Mon Sep 17 00:00:00 2001 From: "mergify[bot]" <37929162+mergify[bot]@users.noreply.github.com> Date: Tue, 10 Aug 2021 23:17:51 +0000 Subject: [PATCH] Updated transaction fee burn description. (#19161) (#19164) (cherry picked from commit 83f0915e15bfa49a536306f37fa7702e2d0418fd) Co-authored-by: bji --- docs/src/inflation/terminology.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/src/inflation/terminology.md b/docs/src/inflation/terminology.md index 3744ed90a3..796547df04 100644 --- a/docs/src/inflation/terminology.md +++ b/docs/src/inflation/terminology.md @@ -24,7 +24,7 @@ A deterministic description of token issuance over time. The Solana Foundation i The inflation rate actually observed on the Solana network after accounting for other factors that might decrease the _Total Current Supply_. Note that it is not possible for tokens to be created outside of what is described by the _Inflation Schedule_. -- While the _Inflation Schedule_ determines how the protocol issues SOL, this neglects the concurrent elimination of tokens in the ecosystem due to various factors. The primary token burning mechanism is the burning of a portion of each transaction fee. While $100\%$ of each transaction fee is currently being destroyed, it is planned on reducing this burn rate to $50\%$ of each transaction fee, with the remaining fee to be retained by the validator that processes the transaction. +- While the _Inflation Schedule_ determines how the protocol issues SOL, this neglects the concurrent elimination of tokens in the ecosystem due to various factors. The primary token burning mechanism is the burning of a portion of each transaction fee. $50\%$ of each transaction fee is burned, with the remaining fee retained by the validator that processes the transaction. - Additional factors such as loss of private keys and slashing events should also be considered in a holistic analysis of the _Effective Inflation Rate_. For example, it’s estimated that $10-20\%$ of all BTC have been lost and are unrecoverable and that networks may experience similar yearly losses at the rate of $1-2\%$. ### Staking Yield [%]