- The Solana community proposal SIMD-0411 will accelerate the network’s path to its long-term 1.5% inflation target.
- The proposal would reduce projected token issuance by approximately 22.3 million SOL over six years.
The Solana community is currently reviewing governance proposal SIMD-0411, which aims to accelerate the network’s disinflation schedule by increasing the annual inflation decrement from –15% to –30%. According to the proposal, this adjustment would bring SOL’s inflation rate down from the current 4.18% to the long-term target of 1.5% by early 2029 instead of 2032, effectively cutting the transition period from 6.2 to 3.1 years.
The Foundation noted that the adjustment would not require changes to existing staking reward mechanisms. Moreover, this accelerated schedule will reduce total token issuance by an estimated 22.3 million SOL, valued at roughly $2.9 billion, over the next six years. Some market advocates noted that the change could ease staking yield dilution. It would eventually support stronger long-term holder incentives and improve supply dynamics.
On the other hand, critics of the proposal have argued that this move could dampen the short-term DeFi activity. Supporters argue that accelerating the disinflation schedule may help strengthen Solana’s tokenomics. They also believe that this could improve the market confidence over time.
However, approval is not guaranteed, as the SIMD-0411 proposal must still receive community backing through the governance process.
SOL Price Recovery Ahead AS ETF Inflows Remain Robust
SOL, the native cryptocurrency of Solana, has faced severe selling pressure, correcting 32% over the past month amid a broader crypto market correction. For now, the SOL price is finding a base at around $130 level. However, crypto market experts believe that the road to recovery looks clear from here.
Crypto market analyst Ted Pillows noted that most of Solana’s downside liquidity has now been cleared. According to the analyst, a significant liquidity cluster remains in the $145–$150 range, with another notable area positioned near $120.
Pillows added that SOL may move to capture upside liquidity if Bitcoin begins to show renewed strength. He suggested a potential short-term bullish momentum dependent on broader market conditions.
On the other hand, SOL ETF inflows have remained in the positive territory ever since launch in early November. Furthermore, asset managers Fidelity and Canary Capital joined the party last week, as reported by CNF.