A proposal to increase the annual reduction rate of Solana staking rewards from 15% to 30% has been put forward by Lostintime101, a researcher at the Solana developer platform Helius. The move is aimed at preventing nearly $3 billion in new SOL tokens from entering circulation. This proposal comes amid concerns that the current 6% annual reward rate is too high compared to Ethereum’s 3%, contributing to increased inflation and selling pressure among stakers, who are required to sell tokens for tax payments. Notably, a similar proposal in March received 61% support but failed to gain approval due to concerns about its potential impact on decentralization. Opponents of the proposal fear that reducing rewards might make validator nodes unprofitable, leading to a further decline in the number of active nodes. While the number of Solana validator nodes has already decreased by 64%, from 2,500 at the start of 2023 to less than 900 now, the proposer estimates only 84 nodes will become unprofitable within three years, suggesting a limited impact.