A report from 21Shares says Solana is advancing two governance proposals, SIMD-550 and SIMD-553, that could materially change SOL’s holding economics over the next two years. Under SIMD-550, Solana’s annual inflation decay rate would rise from 15% to 30%, allowing the network to reach its 1.5% terminal inflation rate faster. The report estimates nominal staking yields could fall to about 2.25% within three years. SIMD-553, which was approved and merged on July 20, would add a burn fee for compute unit requests. According to the report, that could lift daily SOL burns from roughly 600–800 tokens to around 7,500–9,000. 21Shares said the drop in staking income would directly affect validators and stakers, but lower issuance and higher token burns could improve SOL’s long-term supply-demand structure and potentially redirect some capital toward Solana-based decentralized finance.
According to a report from 21Shares cited by ChainCatcher, Solana is moving forward with two governance proposals, SIMD-550 and SIMD-553, that could significantly alter SOL token economics over the next two years.
Under SIMD-550, Solana’s annual inflation decay rate would increase from 15% to 30%, allowing the network to reach its 1.5% terminal inflation rate more quickly. The report said nominal staking yields are expected to fall to about 2.25% within three years.
SIMD-553 was approved and merged on July 20. It would introduce a burn fee tied to compute unit requests, raising daily SOL burns from about 600 to 800 tokens to roughly 7,500 to 9,000 tokens.
21Shares said lower staking income would directly affect validator and staker returns. At the same time, the report argued that lower issuance and higher burn volume could improve SOL’s long-term supply and demand profile and may push some capital toward decentralized finance applications on Solana.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
