Solana threatens crypto's status quo! That is why they resort to slander:
Claiming SOL has high inflation when it is low long-term!
Calling it unreliable, years after the fix!
Decentralized & more than a "memecoin casino": Do not believe their lies & miss out on the future: 🧵
We will go over the misinformation here point by point, as the truth will set us free:
1. High Inflation = Low long-term inflation
2. Outages = Fixed, stable for 2+ years
3. TX "failure" = Reverted TX's
4. Memecoin casino = Only 20% of usage
5. Centralized = Decentralized
1. SOL has a sound economic model:
Identical to ETH's economic model: Low long-term tail inflation + fee burn
An initial high-inflationary bootstrap phase is normal; both BTC & ETH did this too! SOL is a newer chain, so it is still going through that initial bootstrap period now
That is what makes this critique especially hypocritical for most crypto communities to make, as they are "guilty" of this too!
The main economic difference to ETH is that SOL actually scales. So, there is a greater chance that SOL's burn will be able to exceed inflation over the long run!
Another advantage of attracting the majority of usage is that fees derived from usage ultimately pay for scarcity, security & decentralization in the long run!
2. Fee markets & stake prioritization helped fix the instability:
The last time the network went down was over two years ago & we should not expect it to ever go down again
Largely due to SOL now also possessing robust client diversity. Another prerequisite for long-term stability!
3. Transacting on SOL as a normal user is extremely reliable:
There is misinformation going around showing a chart of the number of "failed" TXs on SOL. However, they always fail to provide key context:
Most "failed TXs" on SOL are the equivalent of "reverted TXs" on ETH!
It does not affect normal users; only traders who want these TXs reverted/failed: It is a feature, not a bug!
Arbitrage traders prefer to "cancel" the TX & pay a small fee instead of taking a loss on a trade...
I even personally tested the reliability of the SOL network with hundreds of TXs over several months! Anyone who claims SOL is still unreliable at this point is either ignorant or insincere
4. Less than 20% of SOL usage comes from memes:
The majority of SOL usage comes from DeFi, not memecoins. At least get your facts straight!
Even if that were not the case, it is still a terrible reason to reject a permissionless blockchain. As whichever chain is on the cutting edge in terms of offering competitive utility;
That is where the gamblers & criminals will go. This was true for BTC & ETH during their heydays as well. From Satoshi Dice on BTC to the ICO & NFT crazes on ETH
The nature of permissionless crypto is that we cannot choose who uses it & for what. So if you build the most competitive chain, for people to actually use. Then it will most certainly also attract these types of unsavoury elements
That paradoxically makes such activity a clear sign of that chain's competitive success, even if we might disagree with those types of activities ourselves
5. SOL is a decentralized, permissionless, immutable, & censorship ressistant blockchain:
Claiming otherwise is pure misinformation; SOL has 813 validators with a Nakamoto Coefficient of 19!
With on-chain governance! Currently, it is a form of "validator governance", but it will soon switch over to full stakeholder governance. In terms of governance, it puts SOL way ahead of BTC & ETH, which are both centrally controlled
That easily puts SOL within the top 5 of decentralized blockchains. Further proving that node requirements are not everything, as that downside can be overcome with increased participation due to the economic value that utility creates
Decentralization is measured by the ultimate distribution of power, not the barrier to entry. So, if the high barrier to entry is overcome by the economics of its utility. Then, such a chain can become more decentralized compared to a chain that prioritizes low node requirements. As that is not the same as prioritizing decentralization!
That is why, for example, 1k high power validators are more decentralized & robust compared to 100 Raspberry Pi's sitting in hobiest's basements
Tying it into the "everything chain" thesis. Where these different attributes become a positive feedback loop
SOL's decentralization is based on the same principles as all other blockchains. So, if SOL is not decentralized, then nothing is, including BTC & ETH!
Conclusion:
The competition cannot handle SOL's existence, so they resort to slander. While they virtue signal & morally grandstand, SOL is making a real difference
By creating products for mass adoption that change the world for the better. As that is the most cypherpunk thing we can possibly do! 🔥
Solana threatens crypto's status quo! Do not believe their lies & miss out on the future: 🧵
1. High Inflation = Low long-term inflation
2. Outages = Fixed, stable for 2+ years
3. TX "failure" = Reverted TX's
4. Memecoin casino = Only 20% of usage
5. Centralized = Decentralized
1. SOL has a sound economic model:
Identical to ETH's economic model: Low long-term tail inflation + fee burn
An initial high-inflationary bootstrap phase is normal; both BTC & ETH did this too! SOL is a newer chain, so it is still going through that initial bootstrap period now
That is what makes this critique especially hypocritical for most crypto communities to make, as they are "guilty" of this too!
The main economic difference to ETH is that SOL actually scales. So, there is a greater chance that SOL's burn will be able to exceed inflation over the long run!
Another advantage of attracting the majority of usage is that fees derived from usage ultimately pay for scarcity, security & decentralization in the long run!
2. Fee markets & stake prioritization helped fix the instability:
The last time the network went down was over two years ago & we should not expect it to ever go down again
Largely due to SOL now also possessing robust client diversity. Another prerequisite for long-term stability!
3. Transacting on SOL as a normal user is extremely reliable:
There is misinformation going around showing a chart of the number of "failed" TXs on SOL. However, they always fail to provide key context:
Most "failed TXs" on SOL are the equivalent of "reverted TXs" on ETH!
It does not affect normal users; only traders who want these TXs reverted/failed: It is a feature, not a bug!
Arbitrage traders prefer to "cancel" the TX & pay a small fee instead of taking a loss on a trade...
I even personally tested the reliability of the SOL network with hundreds of TXs over several months! Anyone who claims SOL is still unreliable at this point is either ignorant or insincere
4. Less than 20% of SOL usage comes from memes:
The majority of SOL usage comes from DeFi, not memecoins. At least get your facts straight!
Even if that were not the case, it is still a terrible reason to reject a permissionless blockchain. As whichever chain is on the cutting edge in terms of offering competitive utility;
That is where the gamblers & criminals will go. This was true for BTC & ETH during their heydays as well. From Satoshi Dice on BTC to the ICO & NFT crazes on ETH
The nature of permissionless crypto is that we cannot choose who uses it & for what. So if you build the most competitive chain, for people to actually use. Then it will most certainly also attract these types of unsavoury elements
That paradoxically makes such activity a clear sign of that chain's competitive success, even if we might disagree with those types of activities ourselves
5. SOL is a decentralized, permissionless, immutable, & censorship ressistant blockchain:
Claiming otherwise is pure misinformation; SOL has 813 validators with a Nakamoto Coefficient of 19!
With on-chain governance! Currently, it is a form of "validator governance", but it will soon switch over to full stakeholder governance. In terms of governance, it puts SOL way ahead of BTC & ETH, which are both centrally controlled
That easily puts SOL within the top 5 of decentralized blockchains. Further proving that node requirements are not everything, as that downside can be overcome with increased participation due to the economic value that utility creates
Decentralization is measured by the ultimate distribution of power, not the barrier to entry. So, if the high barrier to entry is overcome by the economics of its utility. Then, such a chain can become more decentralized compared to a chain that prioritizes low node requirements. As that is not the same as prioritizing decentralization!
That is why, for example, 1k high power validators are more decentralized & robust compared to 100 Raspberry Pi's sitting in hobiest's basements
Tying it into the "everything chain" thesis. Where these different attributes become a positive feedback loop
SOL's decentralization is based on the same principles as all other blockchains. So, if SOL is not decentralized, then nothing is, including BTC & ETH!
Conclusion:
The competition cannot handle SOL's existence, so they resort to slander. While they virtue signal & morally grandstand, SOL is making a real difference
By creating products for mass adoption that change the world for the better. As that is the most cypherpunk thing we can possibly do! 🔥
I like @Justin_Bons , he was a Cardano hater and now we have his begrudging respect but outside of all of that, he has a vision and I think he’s right. Crypto will transform finance. Full stop. We will look at the era before crypto like being stuck in a Kafka novel.
Excited to host the 1st inaugural @solana Allocator Forum in London this Thursday 🇬🇧 along with the amazing @SuperteamUK
See u there!
The crypto breakdown they do not want you to read: 🧵
BTC = Insecure & inflationary due to unsustainable security model. Captured centralized control
ETH = Uncompetitive & will remain too slow. Ivory tower centralized governance
USDT = No audit! Possibly the biggest fraud ever
XRP = Totally permissioned & centralized, despite them fraudulently claiming the opposite
ADA = The most decentralized chain is a ghost town. The maximum theoretical TPS is 18, so it cannot grow
HYPE = Not "distributed" & trading is not on-chain, contrary to popular belief
BCH = The "good guys" do not always win
XMR = PoW is insecure; it would only cost $1M to 51% attack Monero for two weeks straight!
CC = Not even crypto, credit for not pretending to be something they are not
XLM = Totally permissioned & centralized despite their misleading claims
HBAR = Permissioned & centralized, but honest about it
SUI = The majority of the supply (80%+) is still controlled by the founders!
MNT = L2 admin key can steal all user funds without delay!
PI = Straight up scam; multilevel marketing, misleading claims, fake "mining" & financial/market manipulation
ICP = Misleading use of terminology & small attack surface due to subnet-based design
WLFI = Trump family controls the majority of the supply (75%+)
POL = L2 Admin key can steal all user funds without delay!
KAS = Uncompetitive without L1 smart contracts. Governance is centralized despite misleading claims
ALGO = Still has permissioned elements, despite some community members denying it. Facing a sustainability crisis
ARB = L2 admin key can steal user funds without delay!
Outlook:
BTC is now a meme coin, while ETH rests on its laurels. As the scammers & criminals laugh all the way back to the bank...
That is how it seems when we only focus on the negative:
When in reality, crypto has never been stronger, more decentralized & profitable through multiple legitimate use cases:
Positives:
Despite HYPE's less-obvious centralization, it shows a strong demand & Product Market Fit for crypto. As ETH also did during its heyday for DeFi. A torch SOL has gracefully picked up in the meantime
SOL's problems tend to be overstated. As the network has been perfectly stable for over two years, the underlying technical issues have been fixed & SOL has always been fully permissionless & decentralized!
The truth is not that bleak; there are countless more chains not mentioned here that can also help carry that torch forward
Being included on this list is not, per se, a condemnation, as in some cases. We can even support the underlying chain for other reasons. Such as Hype for its revenue & SUI for their cutting-edge tech
Progress:
Many chains on this list are actively working to fix these issues, as I was once a SOL critic before they fixed their problems, too!
This includes ADA, HYPE, BCH, HBAR, SUI, ICP & ALGO
Financial Nihilism:
If I believed that the majority of usage on the most used blockchain (SOL) was "fake" & that there was a massive conspiracy in place to hide SOL's centralization
Then I would also be far more pessimistic in how I would view crypto; fortunately, that is not the case
That is why the propoganda campaign against SOL does crypto such a huge disservice, as by discrediting the most used blockchain, it paints a much more pessimistic view of the space as a whole. Considering some of the problems the other major chains have
No wonder so many turn to "financial nihilism" instead, or give up on crypto entirely
Crypto's Hope:
The future of crypto is decentralized, permissionless, fast, scalable & useful:
Utility drives fees, which, in the long term, ultimately pay for security, decentralization & scarcity!
What that means is that the most used chain in the long run will also become the most decentralized, scarce & secure chain. Plan accordingly!
Changing the underlying financial system & the very nature of money was never going to be easy. We will likely still need to change our positions multiple times over before we reach the promised land
Maximalism is the enemy of the free markets crucible, as it holds back meritocracy: Evolution demands we let the dinosaur chains die if they refuse to change ☄️
So, hold on tight, the road towards the financial liberation of the world will continue to be a bumpy one
One we can stomach, with a strong foundation in crypto principles. That gives us a supreme hope & conviction that we are building a better future for all of humanity's children! ❤️
