Solana: Faster Inflation Reduction
"This proposal doubles that to 30%, dragging that terminal rate forward from roughly 2032 to early 2029. Essentially, the network turns down the money printer faster, eliminating up to 22 million soul of future issuance worth around $1.5 billion at current prices."
ℹ️ In shortThe SIMD 550 proposal doubles Solana's annual issuance reduction to 30%, accelerating the target inflation rate and decreasing future token supply.
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… There are currently three proposals on the table in the form of Salana improvement documents or SIMDs to address this issue of value capture and they tackle the leak from three different angles. First, SIMD 550. This one cuts inflation faster. Salana already reduces its issuance by 15% a year on the way to a 1.5% floor. This proposal doubles that to 30%, dragging that terminal rate forward from roughly 2032 to early 2029. Essentially, the network turns down the money printer faster, eliminating up to 22 million soul of future issuance worth around $1.5 billion at current prices. Less dilution means your slice of the pie shrinks more slowly. Second, SIMD547. This is Salana's version of the burn mechanism that ETH holders enjoy. It introduces a small resource-based fee on every unit of computational work and it burns 100% of it. Every swap, every token launch, every AI agent doing its thing permanently destroys a sliver of …
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