Solana Proposes Doubling Disinflation Rate to Impact $2.9B SOL Supply

Mert Mumtaz, co-founder and CEO of Helius, announced the launch of Solana's (SOL) inflation reduction proposal, SIMD-0411. This proposal aims to double Solana’s disinflation rate from -15% to -30%, accelerating the drop to 1.5% in three years instead of six, without altering current staking rewards.

Key Points of the SIMD-0411 Proposal

Doubling Solana's disinflation rate from -15% to -30%.
The total SOL supply growth could reduce by 3.2% over six years, affecting about 22 million SOL ($2.9 billion at current prices).
Staking yields are expected to decline from 6.41% to 2.42% in year three with 66% participation.

This initiative is seen as pivotal for Solana's future, potentially stabilizing its tokenomics and boosting investor confidence. However, community support for the proposal remains uncertain.

Solana ETFs and Market Impact

SOL is trading at $125.89, down 33.25% over the last 30 days.
The launch of spot Solana ETFs could aid price recovery. 21Shares launched its SOL ETF (TSOL) on the CBOE, following similar moves by Bitwise, Grayscale, Fidelity, and VanEck.

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