DeFi Development Corp (DFDV) has officially positioned itself as the first major treasury to publicly back the controversial Solana proposal technically known as SIMD-0411. This strategic move seeks to drastically accelerate the network’s emission cuts, responding directly to the bearish pressure that has eroded the asset’s value during the recent weeks of trading.
The technical plan, presented by developers at Helius Labs, suggests doubling the protocol’s annual disinflation rate, moving from 15% to 30% to reach the terminal goal faster. According to the shared economic model, this adjustment would reduce projected future emissions by more than 22 million SOL tokens over six years, which equates to about 3 billion dollars.
Likewise, DFDV holds a strategic reserve of nearly 2.2 million units, valued at approximately 300 million dollars at the time of the report, making it the third-largest corporate holder. On the other hand, this initiative would take the network to its terminal inflation rate of 1.5% in just three years, significantly advancing the original six-year schedule.
Will this monetary adjustment manage to stop massive institutional selling pressure?
The urgency of this radical measure responds to a dramatic drop in the asset’s quotation, which descended from 197 dollars to 136 dollars recently. Large corporate holders like Forward Industries face massive unrealized losses, calculated at about 646.6 million dollars following the 41% crash from their average entry prices.
Furthermore, proponents of the change argue that the current inflation curve no longer reflects the network’s operational maturity nor the real performance of cryptocurrencies in the current financial ecosystem. Therefore, aligning issuance with real demand has become a critical priority to sustain long-term economic viability against competition.
If successfully implemented, the aggressive cut in circulating supply could substantially decrease the structural selling pressure affecting price performance. Sector analysts suggest this would align the asset with the expectations of large institutional investors, who are looking for much more sustainable and predictable economic models. Thus, although DFDV remains in profit with a positive margin of 26.6%, other major players like Upexi are already registering deep red numbers, which could incentivize a broader and faster consensus to approve these drastic modifications to the project’s monetary policy.
While DFDV has taken a brave step forward, other major treasuries like Solana Company have not yet issued their opinion on this radical change in tokenomics. The debate is expected to intensify considerably in the coming days, as the community evaluates whether accelerating token scarcity is the definitive solution to reverse the current negative trend and protect the value of corporate capital.
