Michael Hubbard, CEO of SOL Strategies, which is implementing a Solana (SOL) accumulation strategy, pointed out that the 'SGP-0002' proposal to double the speed of Solana's inflation reduction is premature. The proposal, which was passed with a 67% approval rate on the 28th of last month, aims to increase the annual inflation reduction rate from 15% to 30%, shortening the period to reach the long-term target of 1.5% from the original approximately 5.7 years to 2.8 years. Hubbard stated, "It is difficult to see the current inflation level of 4-4.5% as excessive, and since a significant portion of SOL issued as staking rewards is restaked, a decrease in issuance does not immediately lead to a reduction in selling pressure or a price increase. Furthermore, a decrease in rewards could potentially reduce the profitability of validator operations."
