A Solana developer just proposed a pretty major change: cutting the time it takes for Solana to reach its 1.5% terminal inflation from more than six years down to just three. If this proposal goes through, at current prices, it would stop almost 3 billion dollars’ worth of new SOL from ever being created.
The proposal, called SIMD-0411, was posted on GitHub on November 21. It suggests doubling the rate at which staking rewards decline, from 15% per year to 30%. Nothing new gets added to the system, and no structural changes are made; it simply speeds up the existing disinflation schedule.
Source: SIMD-0411 Proposal / GithubBy accelerating the decline, Solana would reach its long-term inflation target of 1.5 percent much earlier. The original estimate was around 2032. The new timeline would bring that target forward to early 2029.
Solana would issue roughly 22.3 million fewer SOL over the next six years. Less new SOL hitting the market means less selling pressure from staking rewards, which has been one of the factors weighing on the token’s price.
Why Could This Proposal Get Rejected?
Well, it sounds perfect on paper. Just approve it and watch the price pump, right? Wrong. There is a huge trade-off here. Lower inflation also means staking rewards will drop much faster.
Source: Solana Validators / SolanabeachUnder this proposal, today’s roughly 5% yields would fall toward about 2.4 percent within the next three years. That hits validator economics directly, since many validators rely on staking rewards to cover their operating costs.
If rewards shrink too quickly, smaller validators might be forced to shut down or raise fees, which would concentrate power among larger operators. Fewer validators means more risk of censorship, coordinated failures, or outages, and it weakens trust in Solana’s decentralization, which is one of the main things that gives the network security and credibility.
However, not all validators rely solely on staking rewards. Some subsidize operations for branding or ecosystem presence, while others earn through delegation fees, so the impact won’t hit the network evenly.
The proposal has a real chance of passing, but it ultimately depends on whether major validators and liquid staking providers support it. They stand to lose the most revenue, so if they push back, it is likely to fail. If they accept the trade-off of a healthier long-term validator ecosystem, it will probably move forward.
Solana Price Prediction: Is This Proposal What Sends SOL to $500
Bitwise just pulled in a massive $39.5 million into its SOL ETF, the biggest inflow it has seen since launch. With that boost, Solana ETFs have now hit 20 straight days of inflows, which is pretty interesting considering how shaky the market has been. In total, ETFs brought in about $58 million on November 24 alone.
Source: SOLUSD / TradingViewSolana has a pretty solid support zone forming around 124 to 127 dollars. That area is now the main safety net, so if SOL drops back under 130, it will probably settle and accumulate there again.
SOL Bulls are mainly watching for a clean breakout above 140 with real volume behind it. If that happens, and the ETF momentum keeps pushing, a move back toward 160 becomes possible.
It is still early, but the RSI is starting to pick up, and trading volume jumped 20% to 5.19 billion in the last day, which is a good sign for momentum.
Bitcoin Hyper The First Layer 2 Built On Bitcoin, Might Outperform Solana Next
While Solana is busy arguing over inflation cuts, validator rewards, and whether the proposal will help or hurt the network long term, Bitcoin Hyper is one of the few projects actually gaining momentum without any major controversy attached to it.
Bitcoin Hyper is building a fast Bitcoin Layer 2 using the Solana Virtual Machine, giving it the speed and low fees traders want while still settling back to Bitcoin for security. That mix is exactly what people look for when the market turns cautious. You get performance without trusting a single chain upgrade or validator vote.
Investors seem to agree. Bitcoin Hyper has already raised 28.4 million dollars in its presale, which is impressive in a market where most projects are struggling to pull in attention. The staking rewards are sitting at a strong 73% APY, giving holders a real incentive to stay in early.
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