PANews reported on November 24th that, according to Finance Feeds, the Solana community has launched a new governance proposal, SIMD-0411, aimed at significantly accelerating the network's deflation timeline and reshaping the long-term economic model of the SOL token. This proposal would increase Solana's annual deflation rate from -15% to -30%, shortening the time to reach the long-term inflation floor from approximately six years to just over three years. Current projections indicate that this change will reduce the future issuance of SOL tokens by over 22 million—equivalent to nearly $3 billion at current market valuations—making it one of the most significant monetary policy adjustments in the ecosystem's history.
Solana's existing tokenomics framework sets an annual inflation rate of approximately 4.18%, gradually decreasing to a final inflation rate of 1.5%. SIMD-0411 accelerates this process, locking in a faster decline in token issuance. Proponents argue that this will improve supply and demand dynamics, support stronger price stability, and align Solana's economic model with the behavioral expectations of institutional investors entering the ecosystem. For a chain that has historically emphasized growth, throughput, and incentive-driven expansion, this marks a shift towards a more scarcity-oriented design philosophy.
