Solana Proposal Aims to Cut $1.5B in Future Emissions by Doubling Disinflation Rate

A new Solana governance proposal, SIMD-0550, would double the rate at which the network’s inflation declines, eliminating roughly $1.5 billion in future SOL token emissions at current prices.

The plan, submitted by Helius engineer lostintime101, has already won public backing from Solana Labs co-founder Anatoly Yakovenko.

Solana’s current inflation rate drops by 15% each year toward a terminal rate of 1.5%. SIMD-0550 would increase that annual decline to 30%, getting to the endpoint in about 2.8 years instead of 5.7. The starting rate remains at 8%-only the speed of the decline changes.

The $1.5 billion figure is based on current market prices, so the actual savings would fluctuate with SOL's price.

This isn’t Solana’s first attempt to adjust inflation. A previous proposal, SIMD-0228, was rejected in March 2025. SIMD-0550 builds on subsequent iterations, including SIMD-0411 and SIMD-0441.

The core tension: validators earn a significant portion of their revenue from inflationary rewards. Slowing that revenue stream faster may push some to exit if staking rewards fall below operating costs. Meanwhile, SOL holders benefit from reduced dilution. Another proposal, SIMD-0547, aims to increase token burns through higher resource-based fees.

For now, SIMD-0550 remains in early discussion on GitHub.