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DeFi Development Corp, Solana’s third-largest corporate holder with $300 million in SOL tokens, has become the first major treasury to endorse SIMD-0411, a proposal to double the network’s annual disinflation rate from 15% to 30%.
The endorsement comes as SOL prices have fallen 30% over the past month, intensifying debate over whether accelerated emission cuts could stabilize the token’s value while reducing structural sell pressure.
“This proposal may come as a surprise to some, but its timing makes sense,” DFDV wrote in an official statement. “The ecosystem has grown increasingly vocal about Solana’s current inflation schedule and its impact on SOL’s price.”
The DeFi Development Corp holds nearly 2.2 million SOL, worth approximately $300 million at the time of writing, making it the third-largest corporate holder in the Solana ecosystem.
Analysts suggest that institutional backing like this lends serious credibility to the disinflation proposal, potentially influencing other major holders.
Yet, not all corporate treasuries are on board. Forward Industries, the largest corporate SOL holder, along with Solana Company, have remained silent, leaving uncertainty over wider support for the accelerated emission cuts.
According to the proposal’s modeling, doubling the disinflation rate would slash future emissions by around $3 billion worth of SOL over six years.
Advocates argue this would help align Solana’s monetary policy with institutional expectations while reducing the structural sell pressure that has weighed on SOL prices in recent months.
Solana’s price decline has intensified the debate over disinflation. CoinGecko data shows SOL fell from $197 on October 26 to $136 at the time of writing—a 30% drop in just one month. The downturn has left several large corporate holders sitting on substantial unrealized losses.
Forward Industries faces an estimated $646.6 million loss, representing a 41% decline from its aggregate purchase price. Meanwhile, Upexi, the fifth-largest holder, has about $31 million in unrealized losses, marking a 10% decline.
In contrast, DFDV remains in profit, with gains of approximately $62 million, reflecting a 26.6% unrealized increase on its SOL holdings.
“Supporting Solana disinflation aligns with both long-term network sustainability and shareholder interests,” a spokesperson for DFDV commented.
Developers argue that Solana’s current inflation curve no longer reflects the network’s maturity. The proposal points to metrics such as user activity, DeFi throughput, and network revenue as indicators that the ecosystem is ready for a more disciplined monetary approach.
“By trimming issuance, we can reduce excess sell pressure and foster a more predictable investment environment for institutional players,” said a Solana protocol analyst. “Solana disinflation isn’t just about controlling supply—it’s about signaling that the network is evolving responsibly.”
Market observers suggest that if SIMD-0411 gains traction among other corporate holders, it could reshape Solana’s economic structure for years to come.
With $3 billion in projected emission reductions, the initiative could offer a long-term boost to SOL’s scarcity narrative, potentially stabilizing prices after the recent downturn.
The Solana community and corporate treasuries now face a critical decision: whether to embrace accelerated disinflation or maintain the status quo. The coming weeks could see increased debate, as the proposal sparks conversations about Solana’s role as a modern, institution-friendly crypto asset.
As Solana disinflation becomes a central theme, stakeholders will watch closely to see if the network can align its monetary policy with both market demands and long-term growth objectives.
