PANews|Nov 24, 2025 06:31
[Solana Community Proposes New Governance Proposal SIMD-0411 to Accelerate Inflation Reduction]
According to Finance Feeds, the Solana community has initiated a new governance proposal, SIMD-0411, aimed at significantly accelerating the network's deflationary timeline and reshaping the long-term economic model of the SOL token. The proposal seeks to increase Solana's annual deflation rate from -15% to -30%, reducing the time to reach the long-term inflation floor from approximately six years to just over three years. Based on current projections, this change would result in a reduction of over 22 million SOL tokens in future issuance—equivalent to nearly $3 billion at current market valuations—making it one of the most significant monetary policy adjustments in the ecosystem's history.
Solana's existing tokenomics framework sets an annual inflation rate of approximately 4.18%, which gradually decreases to a final inflation rate of 1.5%. SIMD-0411 accelerates this process, locking in a faster decline in token issuance. Proponents argue that this will improve supply-demand dynamics, support stronger price stability, and align Solana's economic model with the behavioral expectations of institutional investors entering the ecosystem. For a chain historically focused on growth, throughput, and incentive-driven expansion, this marks a shift toward a more scarcity-oriented design philosophy.
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