Two Linked Proposals Reshape SOL's Supply Outlook @Solana's governance process has reached a pivotal moment. Two interconnected proposals targeting $SOL deflation and supply burns have cleare
@Solana's governance process has reached a pivotal moment. Two interconnected proposals targeting $SOL deflation and supply burns have cleared the first stage of on-chain governance and now enter a formal community discussion phase, the final step before a binding validator vote.
The initiative is bundled under SGP-0003, a Solana Governance Proposal that combines two Solana Improvement Documents: SIMD-0553 and SIMD-0550, which must be read together to understand the full supply thesis. SIMD-0553 is the burn engine; SIMD-0550 is the disinflation lever.
SIMD-0553 introduces a resource-based fee system that adjusts transaction costs based on the network resources consumed. If approved, the change could increase daily SOL burns from roughly 650 SOL, valued at about $47,000, to between 7,500 and 9,000 SOL per day.SIMD-0550, meanwhile, doubles the annual disinflation rate to 30%, pulling Solana's 1.5% terminal inflation floor forward to 2029 from 2032 and removing about 18.9 million SOL of emissions over six years.
The framework has been publicly championed by @Mert, who called on validators and token holders to signal support quickly. Solana's formal on-chain governance system gives validators and their delegators a recorded, stake-weighted vote on the network's direction. Proposals must first gain support from 15% of active stake, then pass by a two-thirds supermajority of voting stake.
As of Tuesday morning, the proposal had support from 63 million SOL, or just over 14.4% of the network's staked supply, leaving about 3 million SOL needed to reach the threshold before the August 18 deadline. Supporters include prominent validators such as Helius, Jupiter, Staking Facilities, Drift, OtterSec, and Solana Compass.
Proponents argue the changes will better align SOL economics with rising network activity. The proposals themselves, however, note that even the boosted burn figures remain modest compared with daily issuance under current conditions.Solana currently issues around 60,000 SOL per day through inflation. Even the projected terminal burn of 7,500 to 9,000 SOL per day would initially remain far below that amount. The near-term result is more likely to be slower supply growth than outright deflation.
If the proposal reaches the required support threshold, it will advance to the discussion phase before a formal validator vote. Missing the August 18 signaling deadline would require the proposals to be resubmitted, resetting the process entirely.
Sources:CoinDesk: A new Solana proposal would take daily SOL burns from $47,000 to $650,000Decrypt: Solana Proposal Would Increase Daily SOL Burns More Than 10-FoldCrypto Times: Solana Seeks 14x Burn Increase Alongside Accelerated Supply Reduction
