Solana has just introduced a new proposal called SIMD-0411 to accelerate the speed of fall in inflation and slow down the increase in SOL supply.
According to the current mechanism, the inflation of SOL gradually falls over time and is expected to decrease from 4.18% to 1.5% in 6 years. The new proposal aims to double the rate of decrease, achieving a level of 1.5% in just 3 years without changing the staking rewards.
If approved, the supply of SOL is expected to increase by less than 3.2% over 6 years, equivalent to a fall of about 22 million SOL (≈ 2.9 billion USD) compared to the old plan. However, due to rapidly decreasing inflation, staking yields will decrease over time, estimated from ~6.4% down to ~2.4% after 3 years ( if the staking rate is ~67%).
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Solana has just introduced a new proposal called SIMD-0411 to accelerate the speed of fall in inflation and slow down the increase in SOL supply.
According to the current mechanism, the inflation of SOL gradually falls over time and is expected to decrease from 4.18% to 1.5% in 6 years. The new proposal aims to double the rate of decrease, achieving a level of 1.5% in just 3 years without changing the staking rewards.
If approved, the supply of SOL is expected to increase by less than 3.2% over 6 years, equivalent to a fall of about 22 million SOL (≈ 2.9 billion USD) compared to the old plan. However, due to rapidly decreasing inflation, staking yields will decrease over time, estimated from ~6.4% down to ~2.4% after 3 years ( if the staking rate is ~67%).