Solana News Today: Solana's Inflation Reform Could Threaten Validator Decentralization
- Solana's governance community proposes SIMD-0411 to accelerate inflation reduction to 1.5% by 2029, halving the timeline from six to three years. - Institutional backer DFDV supports the plan, arguing current inflation rates misalign with growing user activity and DeFi throughput. - Faster disinflation could reduce token supply growth by $2.9B over six years but risks validator centralization as staking rewards drop from 6.41% to 2.42%. - Market analysts link the proposal to Solana's $136 price recovery
Solana's governance participants are moving forward with an ambitious proposal to speed up the network’s transition to a 1.5% terminal inflation rate, a shift that could significantly alter the cryptocurrency’s economic structure and influence investor outlook. The plan, known as SIMD-0411, aims to increase the annual disinflation rate from -15% to -30%,
This proposal, put forward by developers at Helius, has already attracted support from institutional players. The
With this new approach, inflation would drop from its current 4.18% to 1.56% by 2029,
Market conditions are adding pressure to the discussion.
The outcome of the proposal depends on agreement among validators and the wider community. While DFDV’s support lends institutional weight, other large treasuries like Forward Industries have not yet made their positions public
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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