📌 SOLANA SLIPS THROUGH A PROPOSAL TO REDUCE INFLATION, SOL HOLDERS BENEFIT
📊 A proposal to speed up the SOL inflation reduction to 30% has been approved with about 67% of votes in favor, after Galaxy switched from not voting to voting in support right before the vote ended.
👉 Under the proposal, the additional SOL issuance is expected to drop by around 18.9 million SOL, equivalent to nearly $1.47 billion, over 6 years if current assumptions are maintained.
📈 This is good news for SOL holders, as the new supply entering the market will be reduced, potentially limiting dilution pressure in the long run.
⚠️ However, validators will be affected in the opposite direction. Staking yields are expected to fall to about 4.34% in the first year, 3% in the second year, and 2.25% in the third year. The question now is how Solana will balance lower issuance with maintaining network security incentives.
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