Key Notes
- According to Mert Mumtaz, a co-founder and CEO of Helius, the Solana inflation reduction proposal has gone live.
- The proposal aims to accelerate the existing Solana disinflation rate by 2x, from -15% to -30%.
- Analysts expect the Solana ETF to trigger price growth amid the latest market rout.
Mert Mumtaz, a co-founder and CEO of Helius, announced on X that the Solana (SOL) inflation reduction proposal has gone live. He believes strongly that this proposal, dubbed SIMD-0411, has the capacity to permanently change the outlook of the Layer-1 chain. Noteworthy, this initiative proposes doubling Solana’s disinflation rate from -15% to -30%
Solana SIMD-0411 Proposal For Inflation Reduction
Solana Foundation has released a document, dubbed SIMD-0411, proposing to speed up the existing Solana (SOL) disinflation rate by 2x.
This means that the disinflation rate will go from -15% to -30% and accelerate the drop to 1.5% all the way from 4.18%. More interestingly, it would be achieved within 3 years, instead of roughly 6 years, without any alterations to the current staking rewards.
In addition, this proposal could cause a 3.2% slash in total SOL supply growth over six years, impacting about 22 million SOL. This is equivalent to $2.9 billion at the current price of the crypto asset. Ultimately, staking yields will see a fast decline (e.g., from 6.41% now to 2.42% in year three at 66% participation) but without abrupt cuts or complex dynamics.
Solana is clearly on the verge of a pivotal moment that would determine the future outlook and performance of its ecosystem. Invariably, this move could go a long way in stabilizing the coin’s tokenomics and eventually boost investors’ confidence.
Although there is no guarantee that the SOL community will support the SIMD-0411 proposal.
big
solana inflation reduction proposal is now live
tl;dr — we are proposing to speed up the existing solana disinflation rate by 2x
no complex mechanisms and no adverse cuts, and after alpenglow (and vote reduction)
we don’t need to leak this value
— mert | helius.dev (@0xMert_) November 21, 2025
Solana ETF as Catalyst For Price Recovery
Meanwhile, the Solana price has been impacted by the condition of the broader cryptocurrency market.
Per CoinMarketCap data, SOL is currently trading at $125.89, corresponding with a 33.25% decline over the last 30 days. This has been the outlook with most digital assets, but the coin’s market capitalization seems to be recovering.
There are expectations that the launch of spot Solana ETFs will catalyze the SOL price recovery. So far, the US market has seen the launch of a few Solana ETFs. On November 19, 21Shares launched its SOL ETF (TSOL) on the CBOE. Bitwise Asset Management was the first to roll out this fund and has since been followed by Grayscale, Fidelity, and VanEck.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
