21Shares Sees Bullish Angle in Solana’s New Yield Reduction
TL;DR
- 21Shares analyzes two Solana governance proposals that would cut staking yield in half over a two-year period.
- Proposal SIMD-550 doubles the protocol’s annual disinflation rate. SIMD-553, on the other hand, introduces a fee-burning mechanism tied to financial activity.
- Both proposals project cutting emissions by between $1.4 billion and $1.5 billion over six years, strengthening Solana’s structural scarcity.
Digital asset manager 21Shares published an analysis examining two active governance proposals on the Solana network: SIMD-550, driven by Helius, and SIMD-553, presented by research firm Temporal.
The second was approved and merged on July 20, 2026, while the first entered voting on August 23. Together, both initiatives would cut staking yield in half within approximately two years and make SOL structurally scarcer.
21Shares’ Bullish Arguments
SIMD-550 targets directly the protocol’s inflation, which represents the largest portion of the current staking yield, estimated at 5.25%. The proposal doubles the annual disinflation rate, from 15% to 30%, compressing the timeline to reach the terminal rate of 1.5% from 2032 to the first half of 2029.
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