Solana News: SOL’s Supply Could Drop Twice as Fast as Disinflation Proposal Goes Live

Solana Foundation has introduced a proposal that aims to accelerate the network’s disinflation schedule and change how quickly SOL supply decreases. The document, identified as SIMD-0411, outlines a shift from a -15% disinflation rate to -30%. The proposal is now active for community review. It sets a path that shortens the time needed to reach Solana’s long-term supply target.

Proposal Targets Faster SOL Supply Reduction

Helius co-founder and CEO Mert Mumtaz confirmed on X that the proposal is live. He emphasized the scale of the potential change to Solana’s structure.

The foundation’s proposal states that the updated schedule would take the disinflation rate down to 1.5% within three years. The current timeline requires roughly six years to reach that level.

The proposal does not modify staking rewards and keeps the reward framework intact. It focuses entirely on the supply curve and its rate of decline. Under the proposed change, SOL’s total supply growth would fall by an estimated 3.2% over six years. This projected drop equals about 22.3 million SOL based on current calculations.

Proposal Signals Gradual Shift in Staking Returns

The brief details the projected effects on staking yields. Current yields are near 6.41%. Projecting good estimates is still approximately 2.42% after three years if 67% remains that number of validating. The idea was to ensure mechanisms for modest adjustments without sudden cuts to rewards. The context emphasizes the determination to maintain equilibrium through transition.

If adopted, SIMD-0411 would introduce a significant shift in Solana’s token structure. The effects would appear as the accelerated disinflation schedule takes hold.

The proposal requires approval from the Solana community. There is no guarantee of support, and the outcome depends on validator and stakeholder decisions.

SOL is still influenced by the general state of the cryptocurrency markets. SOL is trading at $126.62, according to CoinMarketCap. Over the last thirty days, SOL price is down by 33.74%. Similar drops have been seen across other top digital assets in the same time frame.

Solana’s market value now appears to be stabilizing after a period of volatility. The trading volume is still holding up, as people have been showing interest in new developments of this network. The foundation’s proposal is another element for those observing Solana to consider as they weigh the future construction of the network.

The spot ETFs have also drawn interest from in the United States. Over the past few weeks, several issuers have unveiled new products tied to SOL.

Bitwise, Grayscale, Fidelity and VanEck have already brought their products to market. 21Shares launched its TSOL ETF on to the CBOE on November 19. 

It is up to the community review of SIMD-0411 whether Solana would move forward with accelerated disinflation. This decision would influence the next phase of the network’s supply design and how SOL plays out in the years to come.