The Company plans to support both proposals during the current governance process and vote in favor if they advance to a formal stake-weighted vote.
SIMD-0550 would double Solana’s annual disinflation rate from 15% to 30%, allowing the network to reach its existing 1.5% terminal inflation rate more quickly. The proposal is estimated to reduce SOL issuance by approximately 18.9 million SOL over six years, resulting in approximately 2.6% less supply than under the current schedule.
DFDV previously highlighted that reducing future issuance could improve SOL’s long-term supply and demand balance, decrease structural selling pressure associated with staking rewards, and lower the opportunity cost of deploying SOL into DeFi rather than passively staking it.
SIMD-0553 would replace Solana’s static transaction fee structure with a resource-based model under which fees tied to the computing resources requested by a transaction would be burned. Under the proposal’s estimates, daily SOL burns could increase from approximately 648 SOL to between 7,500 and 9,000 SOL at recent levels of network activity.
The proposal could allow Solana to capture more economic value from its usage while preserving low costs for efficient transactions. As network activity grows, more SOL could be removed from circulation, creating a clearer connection between Solana adoption and SOL’s underlying economics.
“We believe these proposals represent meaningful steps toward a stronger and more sustainable economic model for Solana,” said Joseph Onorati, Chief Executive Officer of DeFi Development Corp. “SIMD-0550 would reduce the amount of new SOL entering circulation, while SIMD-0553 would increase the amount burned through network activity. Together, they could improve SOL’s long-term supply dynamics and allow more of the value created by the network to accrue to the token.”
DFDV previously published a detailed overview of the proposals, their mechanics, and their potential impact on Solana and SOL: https://defidevcorp.beehiiv.com/p/solana-reborn.
Current Solana governance proposals can be viewed at: https://governance.solana.com/proposals.
About DeFi Development Corp.
DeFi Development Corp. (Nasdaq: DFDV) has adopted a treasury policy under which the principal holding in its treasury reserve is allocated to SOL. Through this strategy, the Company provides investors with direct economic exposure to SOL, while also actively participating in the growth of the Solana ecosystem. In addition to holding and staking SOL, DeFi Development Corp. operates its own validator infrastructure, generating staking rewards and fees from delegated stake. The Company is also engaged across decentralized finance (DeFi) opportunities and continues to explore innovative ways to support and benefit from Solana’s expanding application layer.
The Company is also an AI-powered online platform that connects the commercial real estate industry by providing value-add services and software subscriptions to multifamily and commercial property professionals, as the Company connects the increasingly complex ecosystem that stakeholders have to manage. The Company’s data and software offerings are generally offered on a subscription basis as software as a service.
Investor Contact:
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