Solana Proposals Set to Slap Brakes on SOL Inflation

Solana is advancing two governance proposals that could reshape SOL's supply dynamics over the next several years.

The proposals, known as SIMD-550 and SIMD-553, target protocol inflation and transaction-based burns.

Together, they are projected to cut Solana's issuance by $1.4 billion to $1.5 billion across six years, according to data from 21Shares.

SIMD-550 doubles the network's annual disinflation rate from -15% to -30%, moving Solana's path to its 1.5% terminal inflation rate up from around 2032 to the first half of 2029.

Nominal staking yield is projected to fall alongside the faster disinflation curve, dropping to roughly 4.34% in year one and near 2.25% by year three.