Core Viewpoint - Solana developers have proposed a significant reduction in SOL inflation through SIMD-0411, aiming to accelerate the decrease in staking rewards and potentially boost SOL's price by tightening supply [1][5][7]. Group 1: Proposal Details - The proposal suggests changing the disinflation rate from -15% to -30%, which would lead to a reduction of total emissions by 22.3 million SOL compared to current projections [1][2][4]. - Under the current emissions schedule, the total token supply is projected to reach approximately 721.5 million SOL in six years, while the new model predicts a supply of 699.2 million SOL [4][5]. Group 2: Rationale Behind the Proposal - The developers argue that high token inflation creates a "leaky bucket" effect, increasing sell pressure as stakers often sell part of their rewards to cover taxes [3][8]. - The proposed changes could save the network hundreds of millions of dollars annually by reducing issuance pressure and making SOL structurally scarcer [3][8]. Group 3: Potential Impact on Price - If demand for SOL grows at its historical rate, the proposed supply reduction could significantly impact the token's price [7][8]. - Conversely, if demand remains flat, the supply reduction may not lead to immediate or dramatic price changes, suggesting that the price effect would be gradual [7][8].