Solana Votes on Plan to Cut $1.5 Billion in Future SOL Emissions: What It Means for Price?

Solana (SOL) validators are voting on two supply proposals. One would raise the disinflation rate, and the other would burn more SOL.

Together, they would reduce projected emissions by about $1.4 billion to $1.5 billion over six years. But what could that mean for Solana's price? Other protocols may offer some precedent.

What Solana Is Voting On

Solana's staking yield sits near 5.25%, drawing mainly from protocol inflation of about 3.78%. Transaction fees and maximal extractable value (MEV) supply the rest.

SGP-0002, which corresponds to the technical proposal SIMD-0550, proposes reducing the inflation schedule. This would be done by increasing the disinflation rate.

"It doubles Solana's annual disinflation rate from -15% to -30%, compressing the timeline to Solana's 1.5% terminal inflation rate from approximately 5.7 years to 2.8 years, reaching that level by H1 2029 rather than H1 2032," 21Shares explained.

Under this, nominal staking yield falls to roughly 4.34% in the first year. It drops to 3% in year two and 2.25% in year three.

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