DeFi Development Corp has taken a bold stance in the Solana ecosystem, publicly supporting a proposal to double the network’s annual emission cuts from 15% to 30%. Holding nearly 2.2 million SOL, valued at around $300 million, the company ranks as the third-largest corporate holder of the token.
Proposal Info
The proposal, SIMD-0411, was introduced by Helius Labs developers on Saturday and is shaping up to be one of the most significant monetary policy changes Solana has seen since its launch. The draft suggests accelerating the journey to the network’s 1.5% terminal inflation rate from six years to just three.
Modeling included in the proposal shows this adjustment could cut around 22 million SOL emissions over six years, equivalent to roughly $3 billion at current market prices.
DeFi Development Corp noted that the timing aligns with increasing concerns within the ecosystem about Solana’s inflation schedule and its downward pressure on token price.
Developers argue the current inflation curve no longer reflects network maturity. Metrics like network revenue, user activity, and DeFi throughput suggest a need to reduce issuance. Cutting emissions could ease structural sell pressure and make Solana more appealing to institutional investors seeking predictable tokenomics.
Solana’s price has been under pressure, dropping from $197 on October 26 to $136, a 30% decline in just a month. The sharp downturn adds urgency to the inflation debate, especially for corporate holders facing significant unrealized losses.
Forward Industries, the largest corporate SOL holder, is down $646.6 million, a 41% decline from its purchases. Meanwhile, Upexi, the fifth-largest holder, has unrealized losses of around $31 million, or 10%. In contrast, DeFi Development Corp remains profitable, showing $62 million in unrealized gains, a 26.6% return to date.
If adopted, the proposal would accelerate Solana’s path to its long-term inflation target, reshaping supply dynamics for one of the top blockchain networks by market capitalization.
Market watchers say this could set a new precedent for how major crypto networks manage token emissions while balancing ecosystem growth.
