Helius researcher releases proposal to increase Solana’s deflationary rate from -15% to -30%

TechFlow News, June 17: Helius published a research article stating that Solana’s inflation-adjustment proposal SIMD-550 recommends increasing the annual inflation decay rate from -15% to -30%, thereby reducing the time required to reach the long-term inflation target of 1.5% from approximately 5.7 years to 2.8 years. Modeling estimates indicate that this proposal would reduce SOL issuance by roughly 18.89 million tokens over the next six years—valued at approximately $1.51 billion at current prices.

The report notes that the proposal’s impact on validators’ overall profitability is relatively limited: among 738 validators, it is projected that two will shift from profitability or breakeven to losses in Year 1; 13 in Year 2; and 30 in Year 3. Meanwhile, nominal staking yields will gradually decline. Helius considers SIMD-550 part of Solana’s recent efforts to optimize its tokenomics, aiming to mitigate persistent sell pressure and price signal distortion caused by high inflation as the network matures.