Will Solana’s ‘double disinflation’ plan squeeze DeFi returns? Analysts weigh in
The post Will Solana’s ‘double disinflation’ plan squeeze DeFi returns? Analysts weigh in appeared com. Key Takeaways What’s the plan’s target? It aims to cut the current Solana inflation rate from 4. 5% to 1. 5% in three years by doubling the disinflation rate from 15% to 30%. What’s the potential impact? Short-term DeFi yields could be hurt, but it could also reduce long-term selling pressure from staking rewards. Some Solana community members raised concerns about how the latest inflation-reduction proposal could hit DeFi yields. He added, “If rates drop, I would reconsider holding that position and even SOL itself. Although I admit, lower inflation is the correct decision for long term and save OL chart. Currently, the Solana inflation rate (emission from staking and validators) is 4. 5% per year. The disinflation rate (emission reduction) is presently fixed at 15% per year. In other words, over the next three years, inflation could decrease to 2. 5% based on a fixed 15% disinflation rate. However, the latest proposal seeks to double the disinflation rate to 30%. Put differently, in three years, the current inflation rate is expected to drop to 1. 5%. He described the proposal as a way to “plug the leaky bucket” and save the network millions of dollars in emission cuts. Projected impact on SOL supply He added that cuts would be minimal and save the network millions of dollars, “Big.. Solana inflation reduction proposal is now live. We don’t.