Solana Weighs Faster Path to 1.5% Inflation

Hi! In today’s edition:

• 🔧 Solana considers speeding its inflation drop

• ⚠️ Cardano dev’s test splits chain and sparks FBI contact

• 🌅 Wormhole debuts Sunrise with day-one MON liquidity

• 🧵 Port3 loses $13M in cross-chain exploit

Today’s newsletter is brought to you by Uniswap!

Add onchain trading to your product without the hassle. The Uniswap Trading API provides simple, plug-and-play access to deep liquidity - powered by the same protocol that’s processed over $3.3 trillion in volume with zero hacks.

Get enterprise-grade execution that combines onchain and offchain liquidity sources for optimal pricing. No need for complex integrations, ongoing maintenance, or deep crypto expertise - just seamless, scalable access to one of the most trusted decentralized trading infrastructures.

More liquidity. Less complexity.

Solana Mulls Proposal to Lower Inflation Rate

Solana developers are considering SIMD-0411, a protocol proposal designed to accelerate the reduction of its inflation rate by doubling its annual disinflation pace.

The proposal, put forth by Helius Labs developers, calls for shifting from the previous annual 15% reduction of inflation to a new 30% annual reduction. 

This means the inflation rate, currently around 4.18%, will reach Solana's long-term target of 1.5% in just three years, rather than six, compressing the timeline from 2032 to 2029.

The change will eliminate about 22.3 million SOL tokens from projected emissions over the next six years, resulting in a total supply reduction of 3.2% compared to the former schedule.

However, it would gradually lower staking yields, meaning a small number of low-stakes validators could become unprofitable.

The proposal’s authors estimate that as many as 47 validators would transition to unprofitable in the third year.

“Losing 47 validators could potentially affect decentralization and security, but I would argue that finally getting to the 1.5% inflation actually makes it better to run a node because you can now plan properly if this is something you intend on doing,” noted Solana researcher 0x_Spade on X.

🍽️ Fill up on macro x crypto before the Thanksgiving break 👉️ Bits + Bips is LIVE today at 4:30pm ET!

Hosts Austin Campbell, Ram Ahluwalia, and Chris Perkins discuss the biggest news in crypto x macro: markets overall, NVDA earnings, prospects of an impending DATs death spiral, a flippening between retail and institutional, and more!

📺️ Stream it: YouTube, X, PumpFun, Twitch

Cardano Founder Contacts FBI After Dev’s ‘Careless’ Test Splits Chain

Cardano founder Charles Hoskinson said he has involved the Federal Bureau of Investigation (FBI) after a developer’s so-called “careless” experiment triggered a major chain split on the blockchain.

The event began on Friday, when a malformed delegation transaction exploited a longstanding bug in the Cardano software, resulting in the blockchain splitting into two incompatible chains.

Emergency patches were deployed within hours, and by Saturday, the network had re-stabilized, but the price of ADA dropped by up to 16% during the turmoil before recovering.

Pseudonymous developer "Homer J" admitted to causing the incident.

He explained that the act was a personal challenge and that he mistakenly relied on AI-generated instructions, failing to adequately test on the network's testnet before executing the problematic transaction on the mainnet.

Despite Hoskinson’s characterization of the event as a “premeditated attack,” several members of the crypto community argued that a single person shouldn’t have been able to execute a chain split.

The decision to involve the authorities also prompted the resignation of an employee of Input Output Global (IOG), the firm that designs and builds Cardano software.

“Just submitted my resignation letter. I’ve fucked up pen testing in a major way once. I've seen my colleagues do the same. I didn't realize there was a risk of getting raided by the authorities because of that + saying mean things on the Internet,” said X user “effectfully.”

Wormhole Launches Solana Liquidity Gateway With Day-One Support for MON

Wormhole Labs has launched "Sunrise," a new liquidity gateway that serves as the primary entry point for external digital assets into the Solana blockchain. 

Sunrise uses Wormhole's Native Token Transfers (NTT) technology to transfer tokens from any blockchain ecosystem directly onto Solana, ensuring these assets are tradable with day-one liquidity on Solana decentralized exchanges and other DeFi venues.

The initial major asset supported by Sunrise is the MON token, the native token of the Monad blockchain, which went live on Solana's mainnet concurrently with Sunrise's launch.

It comes after the conclusion of MON’s token sale on Coinbase, which ended 1.43 times oversubscribed with $269 million committed, despite an initial slow start.

Monad co-founder Keone Hon attributed it to a “dramatic surge of activity” at the end of the sale, which had 85,000 participants and a mix of crypto insiders and newcomers to the space. 

Port3 Network Loses $13 Million in Token Bridge Exploit 

Decentralized AI infrastructure protocol Port3 lost $13 million in an exploit, flagged by onchain data platform Onchain Lens and confirmed by the Port3 team on X. 

The hacker reportedly exploited a vulnerability in the CATERC20 cross-chain solution used by Port3 Network, minting 1 billion fake PORT3 tokens.

Around 162 million of these tokens were dumped on the market, worth around $166,000 in BNB, while the rest were burned by the hacker.

The Port3 team quickly removed liquidity to prevent further damage and announced a 1:1 token migration with enhanced security measures on the BNB Chain to recover from the exploit. 

The exploit triggered an 80% drop in PORT3’s native token price, wiping out significant market capitalization and prompting trading suspensions on some exchanges.

With Aztec’s Ignition Chain Launched, Will Ethereum Have Decentralized Privacy?

Aztec’s co-founders explain why they’re launching a privacy-first Ethereum L2, why decentralization matters from day one, and why they’re doing an ICO.

Fresh off the launch of Ignition Chain, Aztec’s co-founders Zac Williamson and Joe Andrews discuss why they’re rolling out a privacy-preserving L2 now, how they’re approaching decentralization from the start, and why they chose a token sale instead of the airdrop model.

They also explain why they believe most L2s have evolved into “parasitic” ecosystems, how Aztec plans to avoid those incentives, what the AZTEC token is meant to do, and what’s changed in the broader privacy renaissance across crypto.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Bits + Bips: What CFTC Oversight Could Mean For Crypto As Trump’s Chair Pick Crosses Key Senate Hurdle

President Donald Trump’s pick for chair, Mike Selig, has cleared the Senate Agriculture Committee just as lawmakers look set to hand over crypto oversight to the agency.

In this episode, former CFTC Chair Chris Giancarlo joins Unchained Executive Editor Steven Ehrlich to unpack Selig’s Senate hearing. Chris shares his experience working with Mike, why the CFTC should get more resources to handle crypto and crypto’s unique commodity trading structure.

He also touches on the challenges the agency could face regulating crypto, whether exchanges should be allowed to continue performing several functions under one umbrella, the timeline for CLARITY and the regulatory path ahead for prediction markets.

Bring onchain trading to your app with the Uniswap Trading API. Access global liquidity, simplify integration, and power swaps at scale - all from one reliable API.

• ⛏️🇨🇳 Reuters reported that Bitcoin mining has quietly rebounded in China despite the government ban, with miners flocking to cheap-energy regions like Xinjiang and Sichuan and potentially generating up to one-fifth of global hashrate.

• 🔊 BlackRock digital-assets chief Robbie Mitchnick argued that most Bitcoin investors view it as digital gold rather than a future payments network—calling that payments dream a far-off bonus—while highlighting that stablecoins are already gaining real traction in remittances, business transfers, and financial settlement.

• ⚖️ South Korea’s financial watchdog is preparing to penalize four major crypto exchanges — Korbit, Gopax, Bithumb and Coinone — after already fining Upbit’s parent company, with insiders expecting similar violations and the full wave of sanctions to land by mid-2026.

• 🇮🇳 The Ethereum Foundation revealed that Devcon 8 will take place in Mumbai in late 2026, spotlighting India’s booming developer scene, its leadership in onboarding new crypto builders, and the influence of local groups like Devfolio, EthMumbai, and Polygon.

• 🕵️‍♂️ Security researcher Pablo Sabbatella warned that North Korean operatives are embedded far deeper in the crypto workforce than many realize, claiming up to one-fifth of companies may have infiltrators and that fake job applicants—often using U.S. front identities—exploit the industry’s notoriously weak security habits.

• 🛰️ U.S. officials have been investigating Bitmain over fears its Bitcoin-mining machines could be misused for spying after some were found operating near a military base, though the company insisted its hardware can’t be remotely accessed or tampered with.

• 🚫 JPMorgan suddenly shut down Strike CEO Jack Mallers’ personal accounts citing unspecified “concerning activity,” reigniting fears of crypto-targeted debanking despite Trump’s executive order banning such practices.

• 🐲 Thailand’s top crypto exchange Bitkub is considering a Hong Kong IPO as early as next year to raise roughly $200 million, shifting away from its home market after weak stock performance and aiming to tap Hong Kong’s increasingly crypto-friendly environment.

1. Where does Bitcoin go from here? By Jeff Park

2. Understanding SIMD-0411 by Pine Analytics