SOLANA·HUB
DE
Ecosystem Developing

SIMD-0411: proposal to double SOL's disinflation rate under discussion

A Solana Improvement Document proposes doubling SOL's disinflation rate from 15 to 30 percent per year. The proposal is under discussion; a voting timeline is still to be determined.

SOLANA·HUB Editorial
Source: Solana Forum

What happened

On the Solana Forum, SIMD-0411 is under discussion — a proposal to double SOL’s disinflation rate from 15 to 30 percent per year. It was put forward by Lostin and 0xIchigo. The proposal is, in its own words, “currently under discussion”, with the voting timeline still open (“Voting timeline TBD”). No final vote has taken place yet.

What the disinflation rate is

Solana’s inflation rate falls each year by a fixed percentage until a long-term terminal value is reached. This annual decline is the disinflation rate. It currently sits at 15 percent; SIMD-0411 would raise it to 30 percent — so inflation would fall faster.

According to the proposal, this is technically “the simplest possible protocol change”, since only a single parameter is modified.

Which arguments are cited

From the proposal, stated neutrally:

In favor:

  • The 1.5 percent terminal inflation would be reached in roughly 3.1 instead of 6.2 years.
  • Over six years, approximately 22.3 million fewer SOL would be emitted, per the proposal.
  • Lower inflationary pressure would reduce the tax burden on stakers.

Cited as drawbacks:

  • Lower staking yields could make Solana less attractive to investors.
  • Some validators could become unprofitable — the proposal cites an estimate of 47 validators transitioning from profitable/breakeven to unprofitable in year three, with possible effects on validator diversity.

The proposal assumes a 6-month lag before any activation, to account for the governance process and the Alpenglow update.

Update (August 5, 2026): Formalized as SIMD-0550, Discussion Ongoing

The proposal has since been submitted as formal SIMD-0550 — as pull request #550 in the official SIMD repository, by the same authors (lostintime101, 0xIchigo). The substance is unchanged: disinflation rate from 15 to 30 percent, with the starting rate and the long-term terminal inflation of 1.5 percent staying the same. Per the proposal, the terminal value would be reached around three years earlier; the authors put the avoided future emissions at a value of roughly 1.5 billion US dollars (estimate at submission time).

Where the process stands: discussion phase; a formal vote remains outstanding. The community is actively debating the proposal — in parallel with a related proposal for resource-based fees with a higher burn share (SIMD-0553). Both are ongoing proposals, not enacted changes.

Update (August 8, 2026): Governance Package SGP-0003 Clears the Signaling Hurdle

Both proposals now enter the formal governance process as a bundle: SGP-0003 combines the disinflation doubling (SIMD-0550) with the resource-based fee reform (SIMD-0553). On August 5, the package crossed the signaling threshold of 15 percent of validator stake (65.16 million SOL) — backed by 73 validators per reporting, including Jupiter, Staking Facilities, Drift, and OtterSec.

That starts an 11-epoch sequence: seven epochs of discussion, one epoch for the stake snapshot, three epochs of formal voting. Passage requires at least 66.67 percent of the combined for-plus-against stake; abstentions don’t count. The reported projections, per the proposal’s backers: daily burns rising from around 648 to 7,500–9,000 SOL (12 to 14 times), terminal inflation of 1.5 percent reached in 2029 instead of 2032, and roughly 18.9 million SOL less in emissions over six years. The outcome of the vote is open.

Update (August 25, 2026): The Vote Is Running

The formal vote has begun — the disinflation doubling stands as its own proposal, SGP-0002, with the fee reform voted separately as SGP-0003 (numbering per governance.solana.com; in signaling, both ran bundled). The window ends with epoch 1023, expected August 27; participation recently sat below the required one-third threshold. Details on the process, override mechanics, and all three proposals: Solana launches on-chain governance.

Update (August 28, 2026): PASSED — by a Hair, and Not Yet Active

The disinflation doubling is decided: SGP-0002 passed with 67.00 percent approval — 176.29 million SOL in favor, against a 66.67 percent threshold at 60.7 percent stake participation. It hardly gets closer: the proposal cleared the bar by roughly a third of a percentage point; late swings by large validators helped decide it. The fee reform voted in parallel (SGP-0003) failed.

What holds now — and what doesn’t yet: the network has issued a mandate, but the emission curve is unchanged until SIMD-0550 is implemented in the validator clients and activated via feature gate. Only then does the disinflation doubling from 15 to 30 percent per year take effect. The proposal’s model values (roughly 18.9 million SOL less in emissions over six years, terminal inflation ~2029 instead of ~2032) remain projections — no burn, no immediate change.

What to watch next

  • Whether and when a formal voting timeline is set.
  • How validators and stakers position themselves in signaling.
  • Whether the estimated effects on validator profitability are confirmed or revised as the discussion continues.

Not financial advice. This article describes an ongoing governance proposal, not an enacted protocol update.

Sources

#simd #governance #tokenomics #inflation #solana

Related Articles