Solana validators are throwing their weight behind two governance proposals that, if passed, would significantly tighten the network's token supply from both ends: burning more of what alread
Solana validators are throwing their weight behind two governance proposals that, if passed, would significantly tighten the network's token supply from both ends: burning more of what already exists while issuing less going forward.
The first proposal, SIMD-0553, introduces resource-based fees that charge transactions according to the network resources they consume.That would lift daily burns from around 650 SOL, about $47,000 at current prices, to between 7,500 and 9,000, or up to roughly $650,000 a day.Per Anza estimates, that represents a 12- to 14-fold increase in the daily burn rate.
SIMD-0550 doubles the annual disinflation rate to 30%, which pulls Solana's 1.5% terminal inflation floor forward to 2029 from 2032, and removes about 18.9 million SOL of emissions over six years, worth roughly $1.36 billion.The proposal, authored by Lostin and 0xIchigo of Helius, updates the inflation schedule by increasing the disinflation rate from -15% to -30%, effectively doubling the pace of inflation decline.
Validators, the entities that process transactions and secure the Solana network, currently earn a meaningful portion of their revenue from inflationary rewards. New SOL gets created and distributed to validators, and by extension to the stakers who delegate to them, as compensation for keeping the network running. Cutting the inflation rate faster means that revenue stream shrinks faster too.SOL holders, on the other hand, benefit from reduced dilution, as their existing tokens represent a larger share of the total supply over time.
The two proposals are being considered together. Solana validators are signaling support for both SIMD-0550 and SIMD-0553, which would reduce new SOL issuance and increase the amount of SOL burned. SIMD-0550 would accelerate disinflation so the network reaches its 1.5% terminal rate by 2029 instead of 2032.
Initial support stands at 38.62 million SOL, with signaling open until August 18. The proposals must attract roughly 40 million more SOL in support to clear a 15% signaling threshold before an actual vote takes place. Neither proposal is guaranteed to pass. An earlier, similar attempt, SIMD-0228, went to a community vote in March 2025 and failed.
Sources:CoinDesk: A new Solana proposal would take daily SOL burns from $47,000 to $650,000Solana Compass: SIMD-550, SIMD-553 and Solana's pending tokenomics proposalsSolana Developer Forums: SIMD-0550 proposal to double disinflation
