Solana Disinflation Proposal Supported by DAT to Cut Emissions
Background: Solana Disinflation Proposal Gains Institutional Support
Solana Digital Asset Treasury (DAT) DeFi Development Corp. (DFDV) has officially endorsed SIMD-0411, a proposal to double Solana’s annual disinflation rate from 15% to 30%. Announced on Tuesday, DFDV’s statement marks the first major public backing from a major Solana treasury for this initiative, which aims to reduce future SOL token emissions by over 22 million SOL across six years.
SIMD-0411 was introduced by Helius Labs developers on Saturday. If enacted, Solana’s terminal inflation rate of 1.5% would be reached in three years instead of six. Such a move represents the most significant adjustment to Solana’s monetary policy since the blockchain was launched.
Market Impact and Ecosystem Reaction
DFDV’s support comes at a time when awareness of Solana’s inflation structure is increasing. “The ecosystem has grown increasingly vocal about Solana’s current inflation schedule and its impact on SOL’s price,” DFDV wrote, reporting via Cointelegraph.
Solana’s network has seen considerable activity in decentralized finance (DeFi), and developers say the network’s current inflation curve no longer matches its maturity level. Reducing issuance could decrease structural sell pressure, potentially aligning the network more closely with institutional investors’ expectations for modern crypto assets.
However, other major Solana treasuries—such as Forward Industries and Solana Company—have not yet publicly taken a stance on SIMD-0411. This leaves DFDV as the primary institutional voice supporting the proposal so far.
Recent SOL Price Decline & Corporate Holders’ Position
Data from CoinGecko shows Solana’s (SOL) price has dropped from $197 on October 26 to $136, a 30% decrease in the past month. The market downturn has increased pressure for monetary policy reform. Forward Industries, Solana’s largest corporate holder, currently faces around $646.6 million in unrealized losses—a 41% drop from its purchase total. Upexi, the fifth-largest holder, has unrealized losses of about $31 million, or 10% below entry level.
In contrast, DFDV—holding nearly 2.2 million SOL (about $300 million)—remains in profit. CoinGecko data shows DFDV’s position is up approximately $62 million, a 26.6% unrealized gain as of the time of writing.
What’s Next for the Solana Disinflation Proposal?
The proposal’s adoption would lower projected emissions of SOL by about 22 million tokens, equivalent to an estimated $3 billion over six years. This move is intended to synchronize Solana’s monetary policy with the network’s evolving revenue and activity profile. As debate continues across the Solana ecosystem, the community is monitoring feedback from other key treasuries that have yet to comment on SIMD-0411.
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