SOL Strategies CEO says faster Solana inflation cuts are premature

Michael Hubbard, CEO of SOL Strategies, which is pursuing a Solana reserve strategy, said the SGP-0002 proposal to double the pace of Solana inflation cuts was premature. The proposal raises the annual inflation reduction rate to 30% from 15%, shortening the time needed to reach the long-term 1.5% target to about 2.8 years from roughly 5.7 years. It passed on Aug. 28 with 67% support. Hubbard said Solana’s current inflation rate of around 4% to 4.5% is not excessive, and a drop in token issuance would not necessarily ease selling pressure or lift prices immediately, as a significant share of SOL issued as staking rewards is restaked. Hubbard added lower rewards could also hurt the profitability of validator operations.