Key Insights:
- Proposal may accelerate inflation drop, cutting SOL issuance by 22.3 million over six years.
- Faster decrease in supply could reduce staking pressure and improve long-term holder retention.
- Governance vote will decide if Solana adopts the accelerated path to 1.5% inflation.
Solana’s community is reviewing a new proposal, SIMD-0411, that would speed up the network’s path to its long-term inflation target. The current inflation decrement rate is set at –15%. The new proposal aims to double it to –30%, cutting the time to reach 1.5% inflation from 6.2 years to about 3.1 years.
If passed, the target would be met in early 2029 instead of 2032. The annual inflation rate currently sits near 4.18%.
Over 22 Million SOL Could Be Removed From Future Issuance
The proposed adjustment would lower token issuance by an estimated 22.3 million SOL over six years. Based on today’s prices, that’s a cut of roughly $2.9 billion. This change would reduce the supply entering circulation and ease pressure on staking rewards.
Supporters say the shift could improve long-term network value and make the yield structure more stable. According to the proposal: “The adjustment reduces issuance pressure and improves holder retention over time.”
Staking Yield May Stabilize if Inflation Drops
The decrease in token supply growth may help reduce volatility in staking returns. This could encourage long-term participation from validators and token holders. With lower yield dilution, holders may be more likely to keep their tokens staked.
There are some concerns in the community that the faster reduction could be too aggressive. Others argue it brings forward a change that is already planned and helps the network adjust to evolving demand.
Governance Review in Progress
The proposal is under open discussion and will require a vote from validators and stakeholders before it can take effect. If approved, it will be implemented through a future network upgrade.
The authors of the proposal describe it as “predictable and minimal in complexity,” aimed at creating fewer disruptions while achieving long-term supply control.
At the time of writing, Solana (SOL) trades at $129.50. The market cap stands near $57.3 billion.
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Source: https://coincu.com/news/2-9b-cutsolana-eyes-faster-path-to-1-5/


