Solana Rallies 5% on x402 Surge and New Proposal to Cut Token Supply

Solana (SOL) experienced a 5% rally, reaching $138.56, fueled by a significant surge in transaction activity on the x402 protocol, which saw 500% week-over-week growth in volume and transactions over the weekend.

Simultaneously, developers are advancing proposal SIMD-0411, which seeks to double Solana's annual disinflation rate from 15% to 30%. If passed, this would accelerate the timeline for reaching the 1.5% terminal inflation rate from 2032 to 2029, effectively removing about 22.3 million SOL from the potential supply trajectory.

While supporters argue this accelerates scarcity and improves the value proposition, critics express concern that reduced staking yields could render low-stake validators unprofitable, potentially challenging network decentralization. Market sentiment is optimistic regarding ecosystem growth and supply reduction, but the community debate over validator sustainability continues.

(Source：BeInCrypto)