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Solana inflation cut faces CEO criticism
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Solana inflation cut faces CEO criticism

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  • SOL Strategies CEO Michael Hubbard says Solana’s faster inflation cut is premature.
  • The approved proposal would speed up Solana’s annual disinflation rate from 15% to 30%.
  • The change would move Solana towards its 1.5% target inflation rate faster.

Solana (CRYPTO:SOL) has approved a proposal to speed up its planned reduction in token inflation.

The change would raise Solana’s annual disinflation rate from 15% to 30%, according to the report.

Michael Hubbard, CEO of SOL Strategies, said the faster reduction is premature given Solana’s current inflation rate.

The proposal would reduce the time needed to reach Solana’s 1.5% target inflation rate from about 5.7 years to 2.8 years.

The vote received about 67% support, narrowly clearing the two-thirds approval threshold required for the proposal.

The change is projected to reduce Solana’s issuance by about 18.9 million SOL over six years, according to the report.

The proposal still requires technical implementation before the new disinflation schedule takes effect.

At the time of reporting, Solana price was $101.12.

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