Solana Digital Asset Treasury (DAT) DeFi Development Corp. (DFDV) expressed its support for a sweeping proposal aimed at accelerating the network’s disinflation schedule.
On Tuesday, DFDV became the first Solana treasury to publicly endorse Solana Improvement Document (SIMD)-0411, a proposal to double Solana’s annual disinflation rate from 15% to 30%, thereby reducing projected future emissions by over 22 million SOL over the next six years.
“This proposal may come as a surprise to some, but its timing makes sense,” DFDV wrote. “The ecosystem has grown increasingly vocal about Solana’s current inflation schedule and its impact on SOL’s price.”
Solana Strategic Reserve data shows that DFDV holds nearly 2.2 million Solana (SOL), worth about $300 million at the time of writing. This makes the company the third-largest corporate holder of SOL tokens.
While DFDV’s support adds institutional weight to the high-stakes discussion, other DATs, such as Forward Industries or Solana Company, haven’t weighed in on the topic.
Proposal seeks to accelerate Solana disinflation
Helius Labs developers introduced SIMD-0411 on Saturday, marking one of the most significant monetary policy proposals for Solana since its launch.
The draft recommends doubling Solana’s annual disinflation rate from 15% to 30%, which would bring the network to its long-standing 1.5% terminal inflation rate in just three years rather than six.
According to the modeling shared in the proposal, the change would reduce projected emissions by about 22 million SOL tokens, equivalent to about $3 billion, over a six-year period.
The developers said that the existing inflation curve no longer reflected the network’s maturity, pointing toward network revenue, user activity and decentralized finance (DeFi) throughput.
By trimming the issuance, proponents said that the network could reduce structural sell pressure and align it more closely with what institutional investors expect from a modern crypto asset.
Related: Solana ETFs pull $369M in November as investors look to productive yield assets
Solana price slide puts pressure on DATs
CoinGecko data shows that SOL fell from $197 on Oct. 26 to $136 at the time of writing, a 30% decline in the past month. The sharp downturn added urgency to the inflation debate, with some of the top corporate holders sitting on heavy losses.
According to CoinGecko, Forward Industries, the largest corporate SOL holder, faces an unrealized loss of about $646.6 million, representing a 41% decline from its aggregate purchase price.
Upexi, the fifth-largest corporate holder, also sits in the red, with about $31 million in unrealized losses, marking a 10% decline from its entry prices.
DFDV, which publicly endorsed the proposal, is still in profit. CoinGecko data showed that the company remained up by about $62 million, reflecting a 26.6% unrealized gain on its SOL purchases to date.
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