Solana proposal may reduce staking yield to 2.25%, cutting SOL issuance by $1.5 billion over 6 years

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

According to research by crypto asset investment firm 21Shares, the current Solana staking yield is approximately 5.25%. If SIMD-550 passes, 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.

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