Helius Proposes Doubling Solana's Deflationary Rate to -30%, Cutting 18.89M SOL Issuance

According to Foresight News, Helius researchers recently published proposal SIMD-550 to increase Solana's deflationary rate from -15% to -30%, doubling the pace of inflation decline. Under this plan, inflation would reach its long-term terminal rate of 1.5% by mid-2029 (2.8 years), rather than mid-2032 (5.7 years), reducing SOL issuance by 18.89 million tokens over six years, worth approximately $1.51 billion.

The proposal would reduce nominal staking rewards progressively over three years, declining from about 5.84% to 4.34%, 3.00%, and 2.25%. According to Helius' model, the accelerated deflation would have limited impact on validator profitability, with only 2 validators expected to shift unprofitable in year one, 13 in year two, and 30 in year three. SIMD-550 builds on the earlier SIMD-411 (November 2025) and is part of broader efforts to improve Solana's tokenomics.