Terminal Inflation Rate

The long-term floor for Solana's annual SOL issuance rate, set at 1.5% per year. Once the decreasing inflation schedule reaches this target, the protocol will mint new SOL at a fixed 1.5% annual rate indefinitely to continue funding staking rewards. This terminal rate was chosen to balance validator incentives with SOL holders' desire to limit dilution. Transaction fee burns provide partial deflationary pressure against this base issuance.