Solana's 90% Account Deposit Cut May Weaken One Reason to Hold SOL

Solana's plan to reduce account deposits by 90% may weaken one reason for holding SOL, as it would lower the upfront capital required to create new accounts and make reclaiming excess SOL easier.

Eligible Solana token-account owners can already reclaim excess $SOL after the network's first rent reduction went live on September 3. This change lowers the reserve requirements for businesses funding new accounts, making it cheaper to create them.

The full plan would significantly alter how account growth translates into $SOL held against storage. If Solana completes its proposed 90% reduction, a tenfold increase in persistent account state would be needed to require the same minimum $SOL reserves as before.

However, not all of the reclaimed capital is expected to be redeployed or reused. In fact, most accounts are short-lived, with only 24.5% remaining open after one month and 75.5% closing within the same transaction in which they were created.