What Is the SIMD-0411 Proposal
The Solana community has introduced a new governance improvement proposal known as SIMD-0411. Its main goal is to double the network’s inflation decrement rate from –15% to –30%.
If approved, this change would significantly accelerate the reduction of SOL issuance over time. Instead of gradually approaching the 1.5% inflation target by 2032, Solana would reach that level by early 2029.
This effectively compresses the timeline from roughly 6.2 years down to just over 3 years.
How It Changes Solana’s Inflation Curve
Solana’s current inflation rate is approximately 4.18%. Under the proposed adjustment, SOL issuance would decay more aggressively every year.
According to estimates, the change would remove around 22.3 million SOL from projected issuance over the next six years. At current market prices, that reduction is equivalent to around $2.9 billion in supply that would never enter circulation.
This makes the proposal one of the most impactful monetary changes ever discussed in Solana’s governance.
Impact on Staking and Network Participants
A slower issuance rate means less new SOL is distributed as staking rewards over time. While this could reduce nominal staking yields, it also lowers selling pressure from new token emissions.
In theory, this:
• Reduces inflation-driven sell-offs
• Encourages longer-term holding
• Supports price stability
• Strengthens supply scarcity
For long-term holders, this could represent a structural positive.
A Simple and Predictable Change
Unlike complex protocol upgrades, SIMD-0411 is described as simple, transparent, and mathematically predictable. There is no change to Solana’s runtime, consensus, or validator requirements.
It strictly modifies the emission curve — making it easy to understand and evaluate for all participants.
That simplicity increases the likelihood of broad community support.
Governance Process Is Now Underway
The proposal is currently under discussion within Solana’s governance channels. Validators, developers, and token holders are evaluating the trade-offs between lower issuance and long-term network incentives.
If consensus is reached, the change could become a foundational shift in Solana’s monetary policy.
What This Means for SOL
If approved and implemented, Solana would move toward:
• Faster supply tightening
• Improved long-term token economics
• Less inflation-driven volatility
• Increased appeal to long-term holders
This places Solana in a category similar to Bitcoin and Ethereum, where predictable, declining issuance is a key part of the investment thesis.
In a market increasingly focused on sustainable tokenomics, SIMD-0411 could become a defining moment for SOL’s future.
