Governance · SIMD-0550
The reward cut is approved and now being built
Validators passed SIMD-0550 on August 28, with 67% of participating stake voting yes. The change doubles how fast Solana's inflation rate falls each year, from 15% to 30%, so the 1.5% floor arrives around 2029 instead of 2032. It is not live yet. The cut turns on through a single feature gate, and one piece of work must land first: SIMD-0607, which makes Solana's two validator clients calculate rewards in exactly the same way. Once that merges, the switch can be scheduled, with activation still tracking toward early 2027.
What this means for institutions: the faster reward decline is coming but not yet live. Rewards are expected to fall from 5.84% toward about 4.34% within a year of activation, so there is still time to plan, and SIMD-0607's sign-off is the signal to watch.
