Solana Foundation delays unstaking, SOL token peaks 27% high

Solana Foundation paused the unstake of  28.5 million tokens from independent validators as part of its Delegation Program, causing the SOL token to peak at 27% high.

The FTX liquidity massively damaged Solana’s ecosystem, causing hysteria among the investors who unstaked SOL tokens to save themselves. The Solana Foundation immediately began the recovery phase.

According to recent reports, 31 million SOL tokens were unstaked from the blockchain but the Foundation postponed the unstaking of its 28.5 million tokens.

“While 28.5M SOL was in the process of being unstaked during this epoch, the plan to unstake has now been postponed, and all 28.5M SOL have now been re-staked, the team said.

An epoch is a time period where SOL tokens are staked to earn rewards and then issued again. The validators need to stake for two days and then they can unstake once the epoch is over.

This delay was due to the Solana Foundation’s Delegation Program, which holds all the tokens as part of its treasury.

“No entity on Solana has the ability to stake or unstake tokens it does not control the keys for,” the team clarified on it being a decentralized blockchain network, giving ownership to users.

As a result, the SOL prices peaked at 27% and the token seems to be recovering slowly from the massive fall. The current price of SOL is at $16 with 11.74% gains in the 24h chart.

Knowing Solana’s reputation, the blockchain has managed to face the biggest challenge, despite a huge supply still in the hands of Sam Bankman-Fried, the CEO of the now-bankrupt FTX exchange.

The recovery of the ecosystem and the token proves Solana has a strong structure that wouldn’t fall apart easily.

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