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A new Solana proposal would take daily SOL burns from $47,000 to $650,000
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- DeepHorus
A new Solana governance proposal could skyrocket daily SOL burns from approximately $47,000 to $650,000, according to validators signaling support this week. The proposal, SGP-0003, bundles a resource-based fee overhaul with a faster disinflation schedule, potentially tightening the token's circulating supply. If successful, it would mark a significant shift in Solana's economic model.
The proposals, SIMD-0553 and SIMD-0550, emerged from Solana Improvement Documents, the technical process for protocol changes. SIMD-0553 introduces resource-based transaction fees, while SIMD-0550 accelerates the disinflation rate. They are designed to work in tandem, addressing both sides of the supply equation.
Under the new fee structure, daily burns would rise from about 650 SOL to between 7,500 and 9,000 SOL, worth up to $650,000 at current prices. Meanwhile, SIMD-0550 doubles the annual disinflation rate to 30%, pulling Solana's terminal inflation floor forward to 2029 from 2032. This removes approximately 18.9 million SOL of emissions over six years, valued at around $1.36 billion.
Resource-based fees charge transactions according to the network resources they consume, replacing a flat fee model. Solana's inflation currently sits near 3.8%, down from an 8% start under a schedule that cuts 15% annually. The paired proposals aim to reduce new issuance while increasing the amount of SOL burned.
Even at the top of the projected burn range, 9,000 SOL per day is offset by roughly 60,000 SOL in daily inflation, so the fee change alone does not make SOL deflationary. That is why the two proposals are bundled. Together, they meaningfully reduce net supply growth, which could support token price over time.
Initial support stands at 24.94 million SOL, or 5.8% of the 432.65 million staked, roughly 38% of the way to the 15% threshold required for a vote. Sixteen validators have signaled, with Helius accounting for 16.03 million SOL, nearly two-thirds of the total. Blueshift and Temporal Emerald follow with 3.6 million and 1.24 million, respectively.
The proposals must attract roughly 39.95 million more SOL in support before signaling closes on Aug. 18. The 15% gate, set by the Solana Foundation in July, ensures the validator set only votes on significant questions. At the current pace, several more major validators must decide to add their weight.
This governance push reflects a broader trend in crypto toward supply-tightening mechanisms. As networks mature, tokenomics are increasingly designed to balance incentives with long-term value. Solana's move could set a precedent for other Layer-1 protocols.
