Solana’s Inflation Diet: Will DeFi Starve or Thrive? 🍔💸

by

Key Takeaways (Or: What’s Solana Up to Now?)

What’s the plan’s target? 🏹

Solana’s decided to go on a financial diet, slashing its inflation rate from a hefty 4.5% to a svelte 1.5% in three years. How? By doubling its disinflation rate from 15% to 30%. Because nothing says “I’m serious about this” like cutting calories-er, inflation-in half. 🥗

What’s the potential impact? 🤔

Short-term DeFi yields might feel like they’ve been put on a starvation plan, but long-term, it could mean less selling pressure from staking rewards. So, it’s like choosing between a quick sugar rush and a sustainable meal plan. 🍭 vs. 🥦

Naturally, some Solana community members are clutching their pearls (and their SOL) over this latest proposal. DeFi Ignas, the resident Cassandra of crypto, warned that Solana’s DeFi returns-via liquid staking tokens like jupSOL-might become as appealing as a cold pizza crust. 🍕❄️

Ignas quipped,

“If rates drop, I’d rather hold a bag of stale bread than jupSOL. Though, I suppose lower inflation is the spinach we need to flex long-term.”

The 30% Solana Disinflation Plan: A Tale of Two Rates 📉📈

Also known as the “Double Disinflation Rate” or SIMD-0411, this plan is like Solana’s version of a New Year’s resolution: ambitious, slightly painful, and probably necessary. Currently, Solana’s inflation rate is 4.5%, with a disinflation rate of 15%. But why stop there? Let’s double it to 30% and watch the numbers shrink like a cheap sweater in the dryer. 🧦🔥

In simpler terms, if the plan sticks, inflation could drop to 1.5% in three years. That’s like going from a buffet to a single carrot stick. 🥕

Mert Mumtaz, Founder of Helius Labs, called the proposal a “leaky bucket fix,” saving the network millions in emission cuts. Because nothing says “fiscal responsibility” like plugging holes in a metaphorical bucket. 🪣💰

“Big…Solana inflation reduction proposal is now live. We don’t need to leak this value.”

Projected Impact on SOL Supply: Less is More? 📦✨

The proposal claims that in six years, 22.3 million SOL (worth $2.9 billion) will be removed from the inflation schedule. That’s like taking away the punch bowl just as the party’s getting started. 🎉🚫

Solana’s inflation has been the elephant in the room for a while. Earlier this year, SIMD-228 proposed an 80% cut, but the community said, “Thanks, but no thanks,” fearing it would gut staking rewards. Now, SIMD-0411 is here, promising a less drastic cut-but still enough to make DeFi enthusiasts grumble. 😒

As of now, SOL is trading at $129, down 50% from its September high of $253. So, maybe this diet is just what the doctor ordered? Or maybe it’s time to call the financial equivalent of a pizza delivery. 🍕📉

Read More

2025-11-23 12:13