A new governance proposal called SIMD-0411 has sparked discussion in the Solana ecosystem. It aims to speed up Solana’s inflation decline by doubling the current disinflation rate to -30%. Supporters say this change would significantly accelerate the current inflation schedule. Under the proposal, Solana would reach its long-term inflation target of 1.5% in just 3.1 years, instead of the current 6.2-year projection. big solana inflation reduction proposal is now live tl;dr — we are proposing to speed up the existing solana disinflation rate by 2x no complex mechanisms and no adverse cuts, and after alpenglow (and vote reduction) we don’t need to leak this value — mert | helius.dev (@0xMert_) November 21, 2025 SIMD-0411 Impact on SOL Supply and Staking According to the proposal, the change could reduce emissions by 22.3 million SOL over six years. Based on today’s price levels, this equals around 2.9 billion dollars in reduced token issuance. As a result, proponents note that reduced issuance could help ease supply pressure, especially during a period when SOL’s price shows mixed performance. They argue that a clearer and lower issuance path could help stabilize Solana’s token economy. The change also affects nominal staking yields. Modeling shows yields moving from 6.41% to 5.04% in year one, 3.48% in year two, and 2.42% in year three. This may encourage some community members to see lower yields as a way to improve long-term sustainability. It could also boost the use of SOL in decentralized finance protocols. Members note that very high staking yields often draw users away from DeFi participation. Simplicity, Predictability, and Flexibility The new proposal highlights a simplicity benefit: it involves modifying only one protocol parameter. This approach reduces the risk of bugs or unexpected impacts. It also means the idea is easy to explain to users, institutions, and regulators who may not have deep technical knowledge. Clear communication helps build broader understanding and trust. Beyond simplicity and clarity, the proposal improves predictability by offering clear expected outcomes instead of complex or dynamic adjustments. It keeps the 1.5% inflation goal but makes the path more certain and measurable. The plan also addresses token efficiency through the so-called “leaky bucket” effect, where inflation-linked tokens can be lost to taxes, exchange fees, and other costs. By reducing inflation, more value can remain within the Solana economy. Finally, SIMD-0411 does not block future changes and leaves room for advanced inflation systems later. This flexibility appeals to those who prefer gradual, low-risk updates to the network’s economic policy. The post New Proposal to Reduce Solana (SOL) Inflation Gains Support as Price Struggles appeared first on CoinTab News.A new governance proposal called SIMD-0411 has sparked discussion in the Solana ecosystem. It aims to speed up Solana’s inflation decline by doubling the current disinflation rate to -30%. Supporters say this change would significantly accelerate the current inflation schedule. Under the proposal, Solana would reach its long-term inflation target of 1.5% in just 3.1 years, instead of the current 6.2-year projection. big solana inflation reduction proposal is now live tl;dr — we are proposing to speed up the existing solana disinflation rate by 2x no complex mechanisms and no adverse cuts, and after alpenglow (and vote reduction) we don’t need to leak this value — mert | helius.dev (@0xMert_) November 21, 2025 SIMD-0411 Impact on SOL Supply and Staking According to the proposal, the change could reduce emissions by 22.3 million SOL over six years. Based on today’s price levels, this equals around 2.9 billion dollars in reduced token issuance. As a result, proponents note that reduced issuance could help ease supply pressure, especially during a period when SOL’s price shows mixed performance. They argue that a clearer and lower issuance path could help stabilize Solana’s token economy. The change also affects nominal staking yields. Modeling shows yields moving from 6.41% to 5.04% in year one, 3.48% in year two, and 2.42% in year three. This may encourage some community members to see lower yields as a way to improve long-term sustainability. It could also boost the use of SOL in decentralized finance protocols. Members note that very high staking yields often draw users away from DeFi participation. Simplicity, Predictability, and Flexibility The new proposal highlights a simplicity benefit: it involves modifying only one protocol parameter. This approach reduces the risk of bugs or unexpected impacts. It also means the idea is easy to explain to users, institutions, and regulators who may not have deep technical knowledge. Clear communication helps build broader understanding and trust. Beyond simplicity and clarity, the proposal improves predictability by offering clear expected outcomes instead of complex or dynamic adjustments. It keeps the 1.5% inflation goal but makes the path more certain and measurable. The plan also addresses token efficiency through the so-called “leaky bucket” effect, where inflation-linked tokens can be lost to taxes, exchange fees, and other costs. By reducing inflation, more value can remain within the Solana economy. Finally, SIMD-0411 does not block future changes and leaves room for advanced inflation systems later. This flexibility appeals to those who prefer gradual, low-risk updates to the network’s economic policy. The post New Proposal to Reduce Solana (SOL) Inflation Gains Support as Price Struggles appeared first on CoinTab News.

New Proposal to Reduce Solana (SOL) Inflation Gains Support as Price Struggles

2025/11/23 03:47
2 min read
For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

A new governance proposal called SIMD-0411 has sparked discussion in the Solana ecosystem. It aims to speed up Solana’s inflation decline by doubling the current disinflation rate to -30%.

Supporters say this change would significantly accelerate the current inflation schedule. Under the proposal, Solana would reach its long-term inflation target of 1.5% in just 3.1 years, instead of the current 6.2-year projection.

SIMD-0411 Impact on SOL Supply and Staking

According to the proposal, the change could reduce emissions by 22.3 million SOL over six years. Based on today’s price levels, this equals around 2.9 billion dollars in reduced token issuance.

As a result, proponents note that reduced issuance could help ease supply pressure, especially during a period when SOL’s price shows mixed performance. They argue that a clearer and lower issuance path could help stabilize Solana’s token economy.

The change also affects nominal staking yields. Modeling shows yields moving from 6.41% to 5.04% in year one, 3.48% in year two, and 2.42% in year three.

This may encourage some community members to see lower yields as a way to improve long-term sustainability. It could also boost the use of SOL in decentralized finance protocols. Members note that very high staking yields often draw users away from DeFi participation.

Simplicity, Predictability, and Flexibility

The new proposal highlights a simplicity benefit: it involves modifying only one protocol parameter. This approach reduces the risk of bugs or unexpected impacts.

It also means the idea is easy to explain to users, institutions, and regulators who may not have deep technical knowledge. Clear communication helps build broader understanding and trust.

Beyond simplicity and clarity, the proposal improves predictability by offering clear expected outcomes instead of complex or dynamic adjustments. It keeps the 1.5% inflation goal but makes the path more certain and measurable.

The plan also addresses token efficiency through the so-called “leaky bucket” effect, where inflation-linked tokens can be lost to taxes, exchange fees, and other costs. By reducing inflation, more value can remain within the Solana economy.

Finally, SIMD-0411 does not block future changes and leaves room for advanced inflation systems later. This flexibility appeals to those who prefer gradual, low-risk updates to the network’s economic policy.

The post New Proposal to Reduce Solana (SOL) Inflation Gains Support as Price Struggles appeared first on CoinTab News.

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