Solana developers propose cutting down the whales of annual issuance by 20%–30% in the coming years.

Solana developers have just unveiled an important proposal aimed at overhauling the network's inflation schedule. This move could accelerate the transition to a more limited token issuance mechanism while reshaping the staking economy across the Solana ecosystem.

If approved, the SIMD-0411 proposal will drastically reduce the growth rate of the SOL supply, with an expected annual issuance cut of 20%–30% in the coming years.

Announced on the official enhanced repository of the Solana Foundation, this proposal aims to double the annual inflation reduction rate of Solana. Instead of reducing inflation by 15% per year as it currently does, the network will adjust the reduction rate to 30% per year until it reaches a long-term inflation target of 1.5%.

Innovations in the Proposal

According to the current parameters, Solana is expected to reach its final inflation level around 2032. However, with the new model, this timeline will be shortened by nearly three years, possibly as early as 2029.

The simulations from the proposal indicate that the network will avoid token issuance of approximately 22.3 million SOL from now until 2031 — equivalent to nearly 3 billion USD at the current market price.

In fact, this will reduce the amount of new SOL circulating annually, causing staking yields to gradually decrease over time, and bringing Solana's supply curve closer to “low inflation, high utilization” networks like Ethereum.

The community perceives multidimensionally: Benefits and risks

Supporters of the proposal argue that the current inflation schedule is creating prolonged downward price pressure on tokens, especially during periods of weak demand. As ETF funds absorb larger-than-expected amounts of SOL recently, many experts believe that a swift transition to low inflation will reinforce long-term supply scarcity.

In addition, they also emphasized the increasing network activity — particularly in stablecoin remittances, payments, and memecoin transactions — allowing Solana to rely more on fee revenue, reducing dependence on high token issuance to maintain rewards for validators.

However, there are still differing opinions.

Validator operators warn that a sharp reduction in inflation could affect the economic incentives for network security. Staking yields are expected to decrease from around 6% currently to 5% in the first year, 3.5% in the second year, and only over 2% in the third year. Some opinions are concerned that low yields will cause small validators to withdraw, raising the risk of network centralization.

Currently, the proposal has not yet been approved and must go through the community evaluation process, validation testing as well as the overall network governance process.

Important turning point for Solana's monetary policy

If approved, SIMD-0411 will mark the largest tokenomics adjustment of Solana since its launch.

In the context of increasing ETF capital flows and the issuance supply issues being considered, Solana is entering a critical phase where economic design, security costs, and long-term sustainability converge.

The choice of validators to prioritize between supply scarcity or stable staking yields will determine the future of SOL's monetary policy, as well as impact the market trends of Solana in the lead-up to 2026.

Mr. Giáo