in-solana by Supanode

What Is Inflation in Solana?

Inflation on Solana is the rate at which new SOL tokens are minted to fund validator staking rewards. Solana launched with an initial inflation rate of 8%, decreasing by 15% per year (the “disinflation rate”) until reaching a long-term floor of 1.5%.

Inflation schedule

ParameterValue
Initial rate8% per year
Disinflation rate-15% per year
Long-term floor1.5% per year

The inflation rate applies to the total SOL supply. New tokens are minted at the end of each epoch and distributed to validators and their delegators based on vote credits earned.

Reward distribution

  1. New SOL is minted based on the current inflation rate
  2. Rewards are allocated to validators proportional to their earned vote credits
  3. Each validator takes its commission percentage
  4. The remainder is distributed to delegators proportional to their stake

Effective yield

The staking yield for delegators depends on:

  • The current inflation rate
  • The percentage of total SOL that is staked
  • The validator’s vote performance (credits earned)
  • The validator’s commission rate
  • Transaction fee burning (offsets inflation)

Use getInflationRate to query the current rate and getInflationGovernor for the schedule parameters.

FAQ

What is the current inflation rate? Query getInflationRate for the exact current value. The rate decreases each epoch.

Does fee burning offset inflation? Yes. 50% of base fees are burned, reducing effective inflation. During periods of high network activity, the burn rate can meaningfully offset new token issuance.

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