Value Dilution – The "Hidden Cost" Investors Often Overlook

An important point emphasized in Kaiko's analysis is the difference between gross revenue and the actual profit of token holders. We often celebrate when transaction fees on Ethereum or Solana rise, but forget that the network is "paying" validators by printing more money. #Colecolen
Continuous token issuance is essentially a form of inflation tax imposed on holders. If the issuance cost (inflation) far exceeds the revenue generated from transaction fees, the intrinsic value of each token will be diluted. The case of Solana in 2025 is a typical example: despite revenue reaching hundreds of millions of USD, an inflation of over 4 billion USD made this network "unprofitable" from a purely financial perspective. This is a costly lesson for investors: just because a network is busy doesn't mean your assets will appreciate if its (tokenomics) economic mechanism doesn't protect holders from dilution pressure. $BTC $SOL $ETH