Solana Inflation Reduction Plan Boosts Disinflation to 30%
Solana Foundation’s SIMD-0411 plan, known as the Solana inflation reduction proposal, seeks to double the network’s disinflation from -15% to -30%. It accelerates the drop to 1.5% annual inflation in three years instead of six, cutting supply growth by 22 million SOL (approx. $2.9 billion) over six years. The proposal maintains current staking rewards while gradually reducing staking yields from 6.41% to 2.42%. Meanwhile, the launch of spot Solana ETFs from 21Shares (TSOL), Bitwise, Grayscale, Fidelity and VanEck has attracted fresh capital. With SOL trading down 33% over 30 days at $125.89, the Solana inflation reduction proposal and ETF catalysts aim to stabilise tokenomics and support price recovery. Community voting will decide final adoption.
Bullish
The proposal’s move to double Solana’s disinflation rate and cut supply growth by 3.2% over six years strengthens tokenomics and mirrors past stimulus-like upgrades (e.g., Ethereum’s EIP-1559 burn). By preserving staking rewards while gradually reducing yields, SIMD-0411 balances network security with scarcity. Coupled with fresh inflows from multiple spot Solana ETFs, this sets a bullish outlook: short-term price support from ETF demand and long-term value accrual through tighter supply. Historical precedent shows that disinflationary monetary policy coupled with ETF listings tends to boost investor confidence and price stability, suggesting a positive impact on SOL’s market behavior.