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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.

What to watch next

  • Whether and when a voting timeline is set.
  • How validators and stakers respond to the proposal.
  • 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