Solana ETFs (SOL) attracted record net inflows in November, making them the biggest draw in the crypto market. This institutional success, largely fueled by the network’s attractive staking returns, is now colliding with a new governance proposal to implement double disinflation.
Now facing a recent 30% price correction, Solana now faces a crucial choice: embrace long-term scarcity and reshape its economic identity, or maintain the high interest rates currently driving the institutional gold rush.
Solana Supply Shock: Double Disinflation Proposal
Helius Labs recently introduced the SIMD-0411 proposal, which is one of the most substantive monetary policy measures proposed since the launch of Solana. Developers plan to double the network’s annual disinflation rate, from 15% to 30%. The accelerated timeline brings forward the target date for final inflation of 1.5% by three years. This change will reduce total projected emissions by more than 22 million SOL (approximately $3 billion) over the next six years.
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Solana’s inflation reduction proposal is now live
tl;dr — we propose to accelerate the existing solana disinflation rate by 2x
no complex mechanisms and no negative cuts, and after alpenglow (and voice reduction)
we don’t need to leak this value
— mert | heli.dev (@0xMert_) November 21, 2025
Source: Solana Floor
Proponents claim the network is mature, citing massive increases in both network revenue and DeFi throughput. They argue that this growth justifies reducing the issuance schedule, which in turn reduces structural selling pressure and satisfies institutional demand for disciplined tokenomics.
The push to create scarcity occurs during a period of intense market difficulty that affects Solana’s price. Forward Industries, SOL’s largest business owner, is currently facing an estimated loss of $646.6 million. Upexi, the fifth largest corporate SOL holder, has incurred approximately $31 million in unrealized losses, reflecting a 10% decline from original purchase prices. In contrast, DeFi Development Corp. (DFDV), the first major supporter of the proposal, a profit of $62 million.
Investors choose returns: ETF inflows of $419 million
Meanwhile, market flow data for November strongly confirms Solana’s appeal as a ‘productive yield asset’. As large assets were redeemed en masse, Solana ETFs attracted $419.38 million in new capital. To be more specific, Bitcoin ETFs witnessed $3.57 billion in net redemptions, and Ether ETFs lost $1.56 billion during the same period.
Solana ETFs raised a total of $419.38 million in November. – Source: SoSoValue
In other words, investors are increasingly choosing the stable income of Solana’s 5-7% native strike yield over the purely speculative nature of assets like Bitcoin, whose exchange-traded products do not yield returns. Everstake co-founder Bohdan Opryshko explains that private and institutional participants are now viewing SOL as an income-generating instrument rather than just a speculative trade.
Discover more about the basics of Solana with NFTPlazas
Scarcity or return?
Data from Coinbase confirms that as much as 67% of all circulating SOL is in staking, a ratio that Sebastien Gilquin, head of BD and Partnerships at Trezor, cites as one of the strongest staking profiles among proof-of-stake blockchains. The total number of SOLs invested rose to 407 million this year, and retail delegates increased their holdings by over 238,000 SOLs, even during the 30% recession.
The data sets create a critical economic conflict. The success of Solana’s ETFs depends on their high returns, which depend on current inflation. Yet SIMD-0411 tries to halve inflation to create scarcity.
If the community approves the double disinflation plan, the resulting reduction in emissions will reduce the return on investment, potentially halving the rate that currently protects SOL from market outflows that harm its competitors.