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Solana News Today: Solana's Emission Reform: Charting a Course for Long-Term Blockchain Economic Stability

Solana News Today: Solana's Emission Reform: Charting a Course for Long-Term Blockchain Economic Stability

Bitget-RWA2025/11/22 15:56
By:Bitget-RWA

- Solana proposes SIMD-0411 to cut $2.9B token emissions over six years, accelerating inflation reduction to 1.5% by 2029. - The "leaky bucket" plan aims to curb supply growth by 3.2% annually, stabilizing market dynamics through scarcity-driven value. - Staking yields may drop from 6.41% to 2.42% by Year 3, risking 47 validators' profitability and forcing industry consolidation. - Institutional adoption surges with $421M in Solana ETF inflows and Coinbase's acquisition of Solana-based DEX Vector. - The ov

Solana is on the verge of its most substantial economic transformation to date, with a new proposal aiming to cut $2.9 billion in token emissions over the next six years. The plan, officially named SIMD-0411, is designed to speed up the blockchain’s shift to a low-inflation model by increasing its annual disinflation rate from 15% to 30%. Should this be approved, Solana would achieve its target inflation rate of 1.5% by 2029—three years ahead of the previously set 2032 goal

.

Supporters refer to the proposal as a “leaky bucket” solution, aiming to tackle ongoing sell pressure resulting from high emissions. By trimming the yearly supply growth by 3.2% across six years (amounting to 22.3 million SOL), the network

. This adjustment is anticipated to reduce dilution for token holders and bring more stability to the market, which some say has been negatively affected by elevated inflation rates .

Solana News Today: Solana's Emission Reform: Charting a Course for Long-Term Blockchain Economic Stability image 0

Although the proposal is expected to provide long-term price stability, it does introduce operational challenges. Staking returns, currently at 6.41%, are forecasted to drop to 2.42% by the third year,

to more active liquidity roles. This reduction could make up to 47 validators unprofitable within three years, . Despite these hurdles, advocates maintain that the turnover will be limited and is a necessary step toward a more robust and stable ecosystem .

The straightforward nature of the proposal—requiring only a single parameter change—has already attracted early support from major stakeholders. The authors highlight that this adjustment carries little risk of technical issues or unexpected complications,

.

Solana’s economic revamp comes at a time of rising institutional interest. The recent debut of several

ETFs, such as Fidelity’s FSOL and Bitwise’s BSOL, has attracted over $421 million in combined investments, . VanEck, another significant player, has teamed up with Solana-focused treasury company to oversee staking for its upcoming ETF, .

At the same time, Coinbase’s purchase of the Solana-based decentralized exchange Vector highlights the network’s growing infrastructure. The platform plans to incorporate DEX trading to advance its “everything exchange” approach, leveraging Solana’s fast ecosystem

.

The SIMD-0411 initiative marks a shift from incentivized expansion to stability driven by scarcity. While validators may experience short-term profit squeezes, supporters believe this move is crucial for establishing Solana as a credible asset class. As the network adapts to these changes,

on blockchain economics, providing a model for balancing progress with sustainable value.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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