The Solana community is making headlines in late November when it officially released a new governance proposal called SIMD-0411, a plan to accelerate the network's inflation rate and re-adjust the entire long-term economic model of the SOL Token . According to sources, this proposal is considered one of the biggest changes in Solana 's Token policy ever.
If SIMD-0411 is passed, Solana will increase the annual deflation rate of SOL from -15% to -30%. This means that the time it takes for the network to reach “minimum inflation threshold” will be shortened from about six years to just over three years. Current estimates suggest that the total future issuance of SOL could be reduced by more than 22 million Token, equivalent to nearly $3 billion at current market Capital . This is a factor that many investors believe could have a significant impact on the supply trend – a vital factor for the long-term value of SOL.
In its current tokenomics, Solana is designed to have an inflation rate of approximately 4.18% per year, gradually decreasing to a final inflation rate of 1.5%. SIMD-0411 would accelerate this entire process, reducing the amount of SOL released into the market significantly faster. Proponents argue that such a supply squeeze would improve the supply-demand balance, making the market more stable and more attractive to financial institutions.
