Catenaa, Friday, March 14, 2025 – The Solana community is poised to vote on a key proposal, SIMD-228, which would significantly alter the network’s tokenomics by introducing a market-driven inflation model for SOL tokens.
This proposal aims to replace Solana’s current fixed inflation schedule—set at 4.6% annually, tapering to 1.5%—with a dynamic emissions model that adjusts the inflation rate based on the percentage of SOL tokens staked.
The new model proposes that when the staking rate is low, emissions will increase to encourage more staking, while higher staking rates will result in lower rewards, reducing the need for excessive token issuance.
The aim is to stabilize inflation while incentivizing staking participation. Proponents, including Multicoin Capital’s Tushar Jain and Vishal Kankani, argue that this change would better align with the network’s growing economic activity and reduce inflation, benefiting long-term holders of SOL.
However, critics, including Solana Foundation President Lily Liu, have expressed concerns about the unpredictability of staking yields and their potential to alienate institutional investors. Despite these reservations, key figures like Solana co-founder Anatoly Yakovenko and Helius founder Mert Mumtaz have expressed support for the proposal, emphasizing its potential to strengthen the network.
If approved, the proposal could see inflation rates drop below 1% annually at current staking levels. A vote is expected to take place during epoch 753, which may occur this weekend. The ongoing debate highlights the growing divide within the Solana ecosystem over the future of its monetary policy.
