Solana proposal SIMD-0411 go double disinflation, go cut SOL issuance up to 30%
Solana devs propose SIMD-0411 to quicken network disinflation by raising annual disinflation from 15% to 30% until a terminal inflation of 1.5% is hit. Change fit bring Solana reach long-term 1.5% inflation around 2029 instead of about 2032 and e dey projected say e go avoid minting about 22.3 million SOL through 2031 (roughly $3 billion at current prices). Estimated issuance go drop about 20–30% over some years, reducing staking yields from about 6% today to ~5% year one, ~3.5% year two and ~2% year three. Supporters talk say faster disinflation go increase long-term scarcity and make Solana match low-inflation, high-usage chains as fee revenue grow. Critics—mainly validator operators—warn say lower staking rewards fit make small validators no longer profitable, cause exits and raise centralization risk. SIMD-0411 still need testing, community review and on-chain governance before adoption. Traders suppose watch reduced SOL supply vs demand signals (ETF flows, on-chain activity, fee revenue) and validator behaviour — lower issuance be structurally bullish if demand hold, but validator selling or reduced staking yields fit cause short-term volatility.
Bullish
Faster disinflation and big reduction for SOL issuance na dey structurally bullish for SOL price because dem go reduce future supply pressure and increase token scarcity, especially if demand drivers (ETF flows, on-chain usage and fee revenue) still steady or dey grow. The proposal estimate say e go avoid minting about 22.3 million SOL through 2031 and make annual issuance drop 20–30% over some years, wey go change supply-side dynamics well. For short term market fit see volatility: validators wey dey face lower staking yields fit sell or shut down (small validators fit become unprofitable), and that fit increase sell pressure and centralisation risk. Traders suppose expect possible short-term volatility around governance votes, testing phases and any big validator rebalancing, while medium-to-long-term direction go bullish if disinflation pass and demand hold. Key trading signals to watch: on-chain fee revenue, staking reward trends, validator exit/commission changes, and inflows to Solana-focused ETFs or custody products.