Solana Treasury Backs ‘double Disinflation’ Plan Amid 30% Price...

DeFi Development Corp became the first Solana treasury to support SIMD-0411, a proposal to speed up emissions cuts as corporate holders face losses.

Solana Digital Asset Treasury (DAT) DeFi Development Corp. (DFDV) expressed its support for a sweeping proposal aimed at accelerating the network’s disinflation schedule.

On Tuesday, DFDV became the first Solana treasury to publicly endorse Solana Improvement Document (SIMD)-0411, a proposal to double Solana's annual disinflation rate from 15% to 30%, thereby reducing projected future emissions by over 22 million SOL over the next six years.

“This proposal may come as a surprise to some, but its timing makes sense,” DFDV wrote. “The ecosystem has grown increasingly vocal about Solana’s current inflation schedule and its impact on SOL’s price.”

Solana Strategic Reserve data shows that DFDV holds nearly 2.2 million Solana (SOL), worth about $300 million at the time of writing. This makes the company the third-largest corporate holder of SOL tokens.

While DFDV’s support adds institutional weight to the high-stakes discussion, other DATs, such as Forward Industries or Solana Company, haven’t weighed in on the topic.

Helius Labs developers introduced SIMD-0411 on Saturday, marking one of the most significant monetary policy proposals for Solana since its launch.

The draft recommends doubling Solana’s annual disinflation rate from 15% to 30%, which would bring the network to its long-standing 1.5% terminal inflation rate in just three years rather than six.

According to the modeling shared in the proposal, the change would reduce projected emissions by about 22 million SOL tokens, equivalent to about $3 billion, over a six-year period.

The developers said that the existing inflation curve no longer reflected the network’s maturity, pointing toward network revenue, user activity and decentralized finance (DeFi) throughput.

Source: CoinTelegraph