#SOL The Solana developers propose to reduce the annual issuance from 20%–30% in the coming years.
The Solana developers have just launched an important proposal to completely overhaul the inflation schedule of the network. This move could accelerate the transition to a more limited token issuance mechanism while reshaping the staking economy across the entire Solana ecosystem.
If approved, the SIMD-0411 proposal will drastically reduce the growth rate of the SOL supply, expected to cut the annual issuance from 20%–30% in the coming years.
Announced on the official improvement repository of the Solana Foundation, this proposal aims to double the rate of annual inflation reduction of Solana. Instead of a 15% annual inflation reduction as currently, the network will adjust the reduction rate to 30% per year until it reaches the long-term inflation target of 1.5%.
Innovations in the proposal
According to current parameters, Solana is expected to reach its final inflation level around 2032. However, with the new model, this timeline could be shortened by nearly three years, potentially as early as 2029.
Simulations from the proposal indicate that the network will avoid issuing approximately 22.3 million SOL from now until 2031 — equivalent to nearly 3 billion USD at current market prices.
The Solana developers have just launched an important proposal to completely overhaul the inflation schedule of the network. This move could accelerate the transition to a more limited token issuance mechanism while reshaping the staking economy across the entire Solana ecosystem.
If approved, the SIMD-0411 proposal will drastically reduce the growth rate of the SOL supply, expected to cut the annual issuance from 20%–30% in the coming years.
Announced on the official improvement repository of the Solana Foundation, this proposal aims to double the rate of annual inflation reduction of Solana. Instead of a 15% annual inflation reduction as currently, the network will adjust the reduction rate to 30% per year until it reaches the long-term inflation target of 1.5%.
Innovations in the proposal
According to current parameters, Solana is expected to reach its final inflation level around 2032. However, with the new model, this timeline could be shortened by nearly three years, potentially as early as 2029.
Simulations from the proposal indicate that the network will avoid issuing approximately 22.3 million SOL from now until 2031 — equivalent to nearly 3 billion USD at current market prices.
