Solana's Rushed Disinflation Rate Cut Criticized by SOL Strategies CEO

Solana's plan to double its annual disinflation rate has drawn criticism from SOL Strategies CEO Michael Hubbard, who argues that the network's current inflation of about 4% to 4.5% does not justify an accelerated reduction.

Hubbard claims that the change was rushed and unlikely to produce a measurable effect on SOL's price. He also questioned how Solana officials interpreted the result of SGP-0003, the Resource and Inclusion Fee proposal, which passed with 67% support but had its approval denominator changed after voting began.

Hubbard believes that using the original calculation method would have given SGP-0003 enough support to pass. He also expressed concerns about the financial interests of the proposal's supporters, citing a potential conflict of interest due to the association with Temporal, the company behind HumidiFi, one of Solana's dominant proprietary automated market makers.

Hubbard's company has direct exposure to the issue, operating Solana validators, providing staking services, and managing a SOL treasury. He said that cutting issuance would not produce an immediate or easily measured change in SOL's price, as staking rewards remain inside the Solana economy.