Solana Price for 3-Year Early Impact: $2.9 Billion Plan

Recently, Solana's price has garnered attention due to significant steps taken by the community to strengthen the crypto network. The Solana community is discussing a new proposal aimed at rapidly reducing the network's inflation rate. This proposal aims to eliminate additional issuance pressure amounting to approximately 22.3 million SOL (around $2.9 billion).

The new proposal is known as SIMD-0411 and aims to increase the network's current inflation rate from 15% to 30%. This change could significantly shorten the time to reach the long-term target of 1.5% annual inflation from the current approximately 4.18%. If the proposal is accepted, Solana's inflation could reach the target level by the beginning of 2029 instead of 2032. Thus, the current plan's process, which is set to take 6.2 years, could decrease to 3.1 years.

This acceleration could significantly impact market dynamics. This development in the Solana ecosystem has the potential to reduce pressure on staking yields, increase holding motivation, and make supply more predictable. The SIMD-0411 proposal is currently open for discussion in governance processes. While this suggestion appears to be a technical update, it is viewed as a significant supply reduction move that could influence Solana price dynamics in the medium term.

Increasing the rate of inflation decline will prevent 22.3 million SOL from entering the market over the next six years. This situation could reinforce the limited supply theme, especially during bull cycles, thereby reducing current price pressure. The elimination of approximately $2.9 billion of potential issuance pressure could positively impact the SOL price by increasing investors' desire to hold.

However, it is important to remember that price movements will depend on the acceptance of the proposal, macroeconomic conditions, and the overall growth of the Solana ecosystem. Key points for investors to pay attention to during this process will be the development of the proposal and general market conditions.