Key notes
- According to Mert Mumtaz, co-founder and CEO of Helius, Solana’s inflation reduction proposal has been implemented.
- The proposal aims to accelerate Solana’s existing disinflation rate by 2x, from -15% to -30%.
- Analysts expect the Solana ETF to trigger price growth amid the latest market rout.
Mert Mumtaz, co-founder and CEO of Helius, announced on X that the Solana Inflation Reduction Proposal (SOL) had been implemented. He is convinced that this proposal, called SIMD-0411, has the capacity to permanently change the outlook for the Layer-1 chain. Note, this initiative proposes to double the disinflation rate of Solana from -15% to -30%
Solana SIMD-0411 Inflation Reduction Proposal
The Solana Foundation has released a document, dubbed SIMD-0411, proposing to accelerate Solana’s existing disinflation rate (SOL) by 2x.
This means that the disinflation rate will increase from -15% to -30% and accelerate the decline to 1.5% from 4.18%. More interestingly, this would be achieved within 3 years, instead of around 6 years, without any changes to current staking rewards.
Additionally, this proposal could result in a 3.2% reduction in total SOL supply growth over six years, impacting approximately 22 million SOLs. This equates to $2.9 billion at the crypto asset’s current price. Ultimately, stake returns will experience a rapid decline (e.g., from 6.41% now to 2.42% in the third year with 66% stake), but without sharp reductions or complex dynamics.
Solana is clearly on the eve of a pivotal moment that would determine the future prospects and performance of its ecosystem. Invariably, this move could go a long way in stabilizing the tokenomics of the coin and ultimately boosting investor confidence.
Although there is no guarantee that the SOL community will support the SIMD-0411 proposal.
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Solana’s inflation reduction proposal is now online
tl;dr — we propose to accelerate Solana’s existing disinflation rate by 2x
no complex mechanisms and no unfavorable budget cuts, and after alpenglow (and reduction of votes)
we do not need to disclose this value
—mert | helius.dev (@0xMert_) November 21, 2025
The Solana ETF as a catalyst for price recovery
Meanwhile, Solana’s price has been affected by the situation in the broader cryptocurrency market.
According to data from CoinMarketCap, SOL is currently trading at $125.89, which is a decline of 33.25% over the past 30 days. This is happening for most digital assets, but the token’s market cap appears to be recovering.
The launch of Solana spot ETFs is expected to catalyze the recovery in SOL prices. 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 deploy this fund and has since been followed by Grayscale, Fidelity and VanEck.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations aimed at driving mainstream acceptance and global integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
