- The Solana community is reviewing SIMD-0411 to speed up the path to 1.5% inflation by 2029.
- The change reduces projected emissions by 22.3 million SOL, equivalent to approximately $2.9 billion at current prices.
- Staking yields will fall faster, but the impact on validator profitability remains limited in early years.
The Solana community has opened formal discussion on the new governance proposal known as SIMD-0411, authored by Lostin and 0xIchigo from Helius.
The proposal suggests doubling Solana’s inflation decrement rate from –15% to –30%, setting the network on a faster path toward its long-term 1.5% inflation goal.
Today, Solana’s inflation stands near 4.18%, and under current settings, it would take about 6.2 years to reach the terminal rate. SIMD-0411 cuts this timeline in half, setting a new target of early 2029 rather than 2032.
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Faster Decline Toward Long-Term Inflation Target
Inflation would go from 4.18% now to 3.21% in one year, then to 2.24% in year two, and 1.56% in year three. The new design alters just one variable and thus makes this one of the simplest changes to Solana’s economy.
Lostin and 0xIchigo added that a faster schedule provides predictability to stakers, institutions, and devs who have come to depend on knowing what to expect over time.
The faster curve aligns with past models in maintaining the reduction of inflation pressure without interfering with how it affects the functioning of the network. The new model doesn’t alter Solana’s target rate of inflation but changes its speed to attain it.
Solana Staking Yields Set for a Faster Decline
The large quantifiable impact would be to lower the SOL emissions supply by 22.3 million SOL over the next six years. At the current market value, it represents $2.9 billion of avoided emissions.
The total supply of Solana would be about 699 million SOL by 2029 under SIMD-0411 instead of 721 million SOL as it stands currently.
The rate of staking yields will decrease faster. The current nominal rate of staking yields is about 6.41%. It falls to about 5.04% in year one and further to 3.48% in year two and 2.42% in year three under the new rate of returns.
This increases the burden on the validators to be profitable; however, it has only a small effect in the first year. Simulation results indicate that out of 845 validating nodes, 10 lose profitability in year one, 27 in year two, and 47 in year three.
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