Overview
- The live SIMD-0411 proposal would raise Solana’s disinflation rate from 15% to 30%, targeting ~1.5% inflation in three years without changing nominal staking rewards.
- Modeling shows staking yields could compress over time, for example from about 6.4% today to roughly 2.4% in three years under typical participation assumptions.
- The change would remove an estimated 22.3 million SOL from the issuance schedule over six years, or about a 3.2% reduction in projected supply growth, worth roughly $2.9 billion at recent prices.
- Community and validator approval are required, and the debate recalls an earlier, more aggressive cut (SIMD-228) that was rejected over staking concerns.
- Analysts flag near-term risks including lower DeFi and liquid staking returns and bearish technicals, even as new U.S. spot SOL ETFs from firms including 21Shares, Bitwise, Grayscale, Fidelity, and VanEck broaden access.