Solana Collateral yields may drop to 3%, verifiers target 3.5 billion US dollars in emissions reduction
2026-08-27 20:59:05
According to CoinMeta, the Solana validators are considering reducing inflation and increasing token destruction, a move that could lower staking rewards while also reducing the future supply of SOL. The validators are looking at governance changes that could significantly reduce the future issuance of SOL and lower staking rewards over the coming years. The main proposal, SIMD-0550, aims to increase the annual emission reduction rate of Solana from 15% to 30%. According to the official staking documentation, the inflation model for Solana is initially set at 8% per year, with a gradual decrease to a long-term baseline of 1.5%. Under the proposed timeline, the network is expected to reach this baseline around 2029, several years ahead of the current model. It is estimated that this proposal will reduce the future issuance of approximately 18.9 million SOL. Although the reduced rewards may affect the incentives for validators and delegators, the large-scale staking market for Solana provides some room for absorption for the network. The second proposal will increase the proportion of transaction fees that are permanently removed from circulation. Current estimates suggest that the daily destruction volume may increase from about 600-800 SOL to 7500-9000 SOL.
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Source:Coinpaper
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