SOL community sparks intense debate: Can the SIMD-0411 proposal change the future landscape?

Community Boiling Over: The Behind-the-Scenes of Solana’s Sudden Movements

Solana (SOL) has recently become a hot topic in the market over the past week. The current price stands at 136.75 USD, with a 24-hour increase of 1.71%, and a 24-hour trading volume reaching 69.51M USD. Its circulating market cap is at 77.16B. However, what truly sparks community discussion is not just this price movement—it’s the activity data from the x402 protocol explosion and the “bombshell” SIMD-0411 proposal from Solana’s governance layer.

These two events colliding have led participants in the Solana ecosystem to deep reflection: what is the core we should really focus on?

The On-Chain Activity Surge Triggered by x402 Protocol

Over the weekend, the x402 protocol became an unavoidable topic. Data shows:

• Between 11/22 and 11/23, x402 processed over 500,000 transactions
• On-chain trading volume once surged past 100,000 USD, setting an activity record for the protocol
• Compared to the previous week, activity increased by 500%, indicating a sudden release of market demand

This surge demonstrates the high throughput advantage of the Solana network. But community comments generally point out—this is not just a technical capability; it also reflects genuine user demand for low-cost, high-speed transactions. Some active ecosystem observers believe this could signal that a new application or feature is about to become mainstream.

SIMD-0411: A Key Proposal Reshaping Token Economics

On November 22, a governance proposal named SIMD-0411 officially entered Solana’s voting process, quickly becoming a hot topic in the community.

Core changes of the proposal:

• Accelerate the reduction of token inflation, aiming to reach 1.5% inflation rate by 2029, ahead of the original 2032 target
• Reduce future issuance by approximately 22.3 million SOL, accounting for about 3.2% of the current total supply
• Adjust issuance parameters and burning mechanisms to strengthen token scarcity

The ambition of this proposal is to overhaul Solana’s economic model, using a tighter supply strategy to enhance long-term value.

Community Divisions: Opportunities and Risks Coexist

Supporters’ views:

• Faster inflation reduction could support medium- to long-term prices, assuming network demand continues to grow
• Transparent tokenomics can attract institutional investors who increasingly value clarity in token economics
• Reduce new coin issuance pressure in primary markets, improving SOL’s fundamentals

Opponents’ concerns about risks:

• Staking returns decline: If SIMD-0411 is implemented, some smaller validators may find their returns insufficient to cover costs
• Threat to network decentralization: Small validators leaving could lead to validation power concentration among large holders, contrary to Solana’s original decentralization goals
• Market volatility risk: Changes in token economic rules often trigger short-term re-pricing

Validator Dilemmas: Survival or Compromise?

The most concerning aspect within the industry is the impact of this proposal on Solana’s infrastructure. Analytical reports indicate that if SIMD-0411 is executed with current parameters, about 47 validators could become economically unviable within three years.

This has sparked deep community discussions:

• Will a decline in validator numbers weaken the network’s resistance to censorship?
• Do small participants have alternative income streams (like MEV, service fees) to sustain operations?
• How should governance balance “enhancing scarcity” with “maintaining decentralization”?

The 2025 Macro Context: A New Cycle in the Crypto Market

On a macro level, the crypto market is undergoing restructuring. More institutional investors are evaluating real demand for on-chain applications. High-throughput scenarios like DeFi, gaming, and microtransactions are becoming focal points of competition.

Solana is at a critical position in this race:

• On one hand, the explosion of applications like x402 demonstrates ecosystem vitality
• On the other hand, governance decisions like SIMD-0411 will determine the network’s long-term competitiveness

Market attention has shifted to “which chain can both maintain decentralization and offer excellent economic incentives.”

Three Key Scenarios for Investors to Consider

Optimistic Scenario: SIMD-0411 is adjusted after community feedback, introducing protections for small validators; on-chain activity continues to grow, and buying pressure pushes prices higher.

Neutral Scenario: The proposal progresses slowly or is modified; staking yields decline mildly; the network remains stable, with little price fluctuation.

Pessimistic Scenario: Validator exits increase significantly, network decentralization metrics decline; market loses confidence in governance decisions, leading to selling pressure.

In any case, in the short term, close attention should be paid to: validator exit numbers, stake concentration, mainstream application transaction flows, and the final community voting results.

Conclusion

The current SOL price of 136.75 USD reflects a market optimistic about the on-chain activity surge from x402 and mixed expectations for the SIMD-0411 reform. This price is not the end but a node in the market’s re-pricing process influenced by these two major events.

Community discussions indicate that Solana has entered a critical moment of strategic choice. Token holders, validators, and application developers are all watching how this proposal unfolds. In the coming weeks, every on-chain data point and community comment could influence the next chapter of Solana’s story.