Solana Treasury Backs ‘Double Disinflation’ Plan Amid 30% Price Decline

Why It Matters

Accelerating Solana’s disinflation could stabilize the token’s price by curbing supply‑driven sell pressure, making SOL more attractive to institutional investors and potentially improving the network’s long‑term financial sustainability.

Summary

Solana Digital Asset Treasury DeFi Development Corp. (DFDV) became the first Solana treasury to publicly back SIMD‑0411, a proposal to double the network’s annual disinflation rate from 15% to 30%, cutting projected SOL emissions by roughly 22 million tokens over six years. DFDV, the third‑largest corporate SOL holder with about 2.2 million SOL (~$300 million), said the timing is appropriate as the ecosystem voices concerns that current inflation is suppressing price. The proposal, introduced by Helius Labs, aims to reach Solana’s 1.5% terminal inflation in three years instead of six, reducing structural sell pressure and appealing to institutional investors. The endorsement comes amid a 30% drop in SOL price since late October, which has created unrealized losses for major holders, though DFDV remains in profit with a $62 million unrealized gain.