Solana developers are considering SIMD-0411, a protocol proposal designed to accelerate the reduction of its inflation rate by doubling its annual disinflation pace.

The proposal, put forth by Helius Labs developers, calls for shifting from the previous annual 15% reduction of inflation to a new 30% annual reduction. 

This means the inflation rate, currently around 4.18%, will reach Solana’s long-term target of 1.5% in just three years, rather than six, compressing the timeline from 2032 to 2029.

This story is an excerpt from the Unchained Daily newsletter.

The change will eliminate about 22.3 million SOL tokens from projected emissions over the next six years, resulting in a total supply reduction of 3.2% compared to the former schedule.

However, it would gradually lower staking yields, meaning a small number of low-stakes validators could become unprofitable.

The proposal’s authors estimate that as many as 47 validators would transition to unprofitable in the third year.

“Losing 47 validators could potentially affect decentralization and security, but I would argue that finally getting to the 1.5% inflation actually makes it better to run a node because you can now plan properly if this is something you intend on doing,” noted Solana researcher 0x_Spade on X.