Solana Inflation Schedule Proposal


Initial Economic Parameters

Below are some initial parameters that will largely drive the Solana inflation schedule. Details of the proposal can be found here.


  • Total SOL supply as of 2022-11-12 12:53:42 is 533302978.36 SOL
  • Initial Network Inflation [%] is the initial annualized inflation rate that the protocol will issue tokens. Proposed value: 8%
  • Annual Inflation Rate Change [%] describes the decrease in inflation issuance over time. Specifically, the % change to the Network Inflation Rate per year. Proposed value: -15%
  • Long-term Inflation Rate is the floor of the annualized inflation rate. Proposed value: 1.5%
  • Initial Percent of Supply Staked [%] represents the initial amount of staked SOL divided by the Total SOL on the network. This ratio uniquely determined the staking yield absent any consideration of burnt fees, slashing, yield throttling or any future unaccounted for token destruction events or features
  • Staking Yield is the rate of return (aka interest) earned on SOL staked on the network.
  • Adjusted Staking Yield is the positive change in ownership (positive dilution) of the proportion of staked tokens on the network
  • Inflation and yields (%) are displayed as annualized yields
  • This model assumes that staking yields are added to existing validator stake and that the initial non-staked supply does not change. The impact of the distribution of validator commissions to un-staked validator vote account is not account for here.

Note: the model here only accounts for inflation issuances and therefore is an upper limit on the amount of SOL issued. Unaddressed here are mechanisms such as fee burning. Which, by design, burns 50% of fees generated to increasingly counter inflation issuances with increased network utilization.