📰 Solana's New Proposal (SIMD-0411) to Accelerate Disinflation
Solana has just introduced a new proposal named SIMD-0411 aimed at accelerating the rate of disinflation (reduction of the inflation rate) and slowing down the growth rate of the SOL supply.
• Current Mechanism: Under the current mechanism, SOL inflation gradually decreases over time, but it is projected to take 6 years to drop from 4.18\% to 1.5\%.
• New Proposal (SIMD-0411): This proposal seeks to double the rate of reduction, helping the network reach the 1.5\% target in just 3 years without changing the staking rewards (rewards for validators).
Impact if Approved:
• SOL Supply: The SOL supply is projected to increase by less than 3.2\% over 6 years, equivalent to a reduction of approximately 22 million SOL (estimated \approx \$2.9 billion USD) compared to the old plan.
• Staking Yield: Because the inflation rate will decrease faster, the staking yield will also decline over time. It is estimated to drop from \sim 6.4\% to \sim 2.4\% after 3 years (assuming the staking ratio remains at \sim 67\%).#solana
