TLDR
The proposal is SIMD-411. It accelerates Solana (SOL) disinflation, cutting projected emissions by about 22.3 million SOL over six years and reaching 1.5% terminal inflation in roughly 3.1 years per a Blockworks report.
- SIMD-411 doubles the disinflation rate from -15% to -30% while keeping terminal inflation at 1.5% per Blockworks.
- It shortens the path to 1.5% inflation from ~6.2 years to ~3.1 years per Blockworks.
- The cut translates to lower structural sell pressure from rewards, improving supply dynamics per Blockworks.
Deep Dive
1. Proposal Name
SIMD-411 is the Solana Improvement Document that proposes changing emissions by speeding up disinflation. It was flagged in recent coverage as the parameter update that affects SOL issuance per Blockworks.
If adopted, the network issues fewer new SOL over the medium term, which can improve the supply side of the market.
2. Mechanics
The change doubles the disinflation rate from -15% to -30%, leaving the 1.5% terminal inflation unchanged. That yields a faster glide path to the end state: from roughly 6.2 years to about 3.1 years per Blockworks.
- Current inflation near ~4.14% declines more quickly toward 1.5% per Blockworks.
- The terminal target (1.5%) does not change; only the speed to get there changes per Blockworks.
Validators and stakers still earn issuance, but the rate tapers faster, tightening net new supply sooner.
3. Impact
Over six years, the faster taper could reduce cumulative emissions by roughly 22.3 million SOL (about $2.9 billion at referenced valuations) versus the current path per Blockworks. Lower expected issuance generally reduces structural sell pressure from rewards.
- Medium-term supply pressure decreases if reward emissions fall per Blockworks.
- Network security trade-off is limited, since terminal inflation stays at 1.5% per Blockworks.
- Implementation still depends on the Solana governance and client rollout process.
If your lens is supply dynamics, SIMD-411 is a constructive change. A practical next step is to watch for formal adoption and client releases on the Solana page.
Conclusion
SIMD-411 is the proposal that changes SOL emissions by accelerating disinflation while keeping the 1.5% terminal rate. If enacted, it tightens the medium-term supply path and lowers structural sell pressure, with the largest effect coming from reaching the end-state faster rather than changing the end-state itself.
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