Solana may be preparing for one of its most dramatic economic adjustments to date.
- Solana is voting on a proposal to reduce SOL supply twice as fast as originally planned.
- Staking rewards stay unchanged, but yields would slowly decrease as supply tightens.
- The outcome could significantly influence Solana’s long-term tokenomics and investor outlook.
A new governance proposal suggests accelerating the pace at which the network reduces new SOL issuance – potentially halving the time needed to reach its long-term monetary target.
Instead of restructuring validator rewards or changing the staking system, the plan focuses purely on lowering supply growth. Under the suggested model, Solana’s annual disinflation rate would reach 1.5% within three years rather than six. The updated trajectory would remove more than 22 million SOL from expected circulation across the same timeframe.
Rewards Stay Constant, Yields Cool Gradually
The proposal stresses that staking incentives would remain intact, with no shock cuts to payouts. Instead, yields would taper naturally as supply reduction accelerates. If validator participation stays around current levels, staking returns could drift from today’s ~6.4% toward roughly 2.4% over the next three years. Helius CEO Mert Mumtaz underscored the scale of the change when highlighting the proposal on X.
ETF Momentum Adds New Stakes to the Debate
Institutional interest in Solana is rising at the same moment this tokenomics vote is developing. Bitwise, Grayscale, Fidelity and VanEck have already brought SOL spot ETFs to U.S. markets, and 21Shares launched its TSOL ETF on the CBOE on November 19. With these products now live, the outcome of the supply decision carries added significance for investors treating SOL as a long-term asset.
Price Pressured by Broader Market, Not Proposal
SOL continues to trade in line with the downturn across digital assets rather than reacting to the governance debate. The token is priced at $126.62 after a 33% decline in the past month, although trading activity remains resilient as market participants watch the proposal’s progress.
Decision Will Shape Solana’s Next Monetary Chapter
Whether the accelerated disinflation path becomes reality depends entirely on community approval. Validators and stakeholders will decide if Solana adopts the faster supply-tightening model or stays the course. The result will define how SOL behaves economically in the coming years — influencing supply dynamics, staking returns and the network’s broader value framework.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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