Solana plans to reduce SOL emissions by 3 billion in its biggest economic change ever

Solana is considered a radical change in its economic model that will eliminate about 22.3 million soles ($2.9 billion) of emissions expected in the next six years.

As a result, the proposal will aggressively accelerate the blockchain transition in a low-inflation environment.

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Solana’s plan to reduce supply puts about 50 auditors at risk

The measure, officially titled SIMD-0411, proposes to double the annual net inflation reduction rate. Solana From 15% to 30%.

The authors argued Doubling the inflation reduction rate requires adjusting only one parameter, making it the simplest possible change in the protocol that provides a significant reduction in inflation. This modification will not consume the resources of the core developers. It carries little risk of introducing errors or unexpected boundary conditions.

If the proposal is passed, Solana will reach the “final” inflation target of 1.5% in about three years, from 2029. It should be noted that this stage was initially set for 2032.

Supporters describe the current issuance schedule as a “leaky bucket” that continually dilutes shareholders and creates persistent selling pressure.

By tightening the offer, the network hopes to emulate Scarcity mechanisms that Bitcoin has benefited from Ethereum historically.

They write that our models indicate that, over the next six years, aggregate supply will be about 3.2% lower (a reduction of 22.3 million soles) than the current inflation schedule. At current Sol prices, this equates to about $2.9 billion in reduced emissions. Excessive emissions create constant downward pressure on prices, distort market signals and prevent fair price comparisons.

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In addition to support prices, the plan seeks to reform the incentive structure for Decentralized Finance (DeFi).

Furthermore, the proposal argues that high inflation reflects interest rates in the conventional financial system, raising the “risk-free” standard and discouraging borrowing.

After that, aim Solana to pay the capital Away from passive verification and towards active liquidity provision by compressing the nominal returns of bets. These returns are expected to decrease from 6.41% to 2.42% from the third year.

This shift to “hard money” brings operational risks.

The reduction of subsidies inevitably leads to It narrows the margins of the auditors.

It is estimated that as many as 47 auditors could become unprofitable within three years as bonuses dry up. However, the authors describe this level of change as minimal.

This raises the question of whether the network is moving towards larger and better funded operators that can survive on transaction fees alone.

Despite these concerns, early support from key players in the ecosystem suggests that Solana is poised to replace brisk growth with greater stability. This change reflects the desire to see the network as a mature asset class headed towards scarcity.