Solana Considers Cutting $3 billion in SOL Emissions in its Biggest Economic Shift Yet
Solana is proposing to double its annual disinflation rate to aggressively reduce SOL emissions by $2.9 billion over six years.Summary
Solana is considering a significant economic overhaul (SIMD-0411) that would double the annual disinflation rate from 15% to 30%, effectively cutting projected SOL emissions by approximately 22.3 million SOL ($2.9 billion) over the next six years. This measure aims to accelerate the network's transition to its terminal inflation target of 1.5% by 2029, three years earlier than originally planned, by emulating scarcity mechanics seen in Bitcoin and Ethereum. Proponents argue this reduces dilution and persistent sell pressure, while also lowering the 'risk-free' benchmark for DeFi lending. However, the reduction in subsidies is expected to squeeze validator margins, potentially making up to 47 validators unprofitable within three years, raising concerns about network consolidation. Despite this risk, the proposal has early support, signaling a move toward greater stability for Solana.
(Source：BeInCrypto)