Solana Proposal Could Lower Staking Yields to 2.25%, Reducing SOL Issuance by $1.5 Billion Over 6 Years

Odaily News - Two Solana proposals aim to reduce token issuance and increase burning, with an estimated $1.4 billion to $1.5 billion reduction in SOL issuance over 6 years. SIMD-550 has entered the governance voting stage, proposing to increase the annual inflation reduction rate from 15% to 30%; SIMD-553 was approved in July, which will increase the burn amount based on requested compute units.

According to research by crypto asset investment firm 21Shares, Solana's staking yield is currently around 5.25%. If SIMD-550 is passed, the nominal staking yield is expected to drop to approximately 4.34% in the first year, 3% in the second year, and 2.25% in the third year, reaching a terminal inflation rate of 1.5% in the first half of 2029.

Following the implementation of SIMD-553, Solana's daily SOL burn is expected to rise from approximately 600 to 800 tokens to 7,500 to 9,000 tokens. Currently, about 67.9% of SOL is staked; under the impact of fee structure changes and declining inflation, it is estimated that 2 validators may incur losses in the first year, increasing to approximately 30 by the third year. (Bitcoin.com News)