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Solana Proposal Could Increase SOL Burns 14-Fold

Solana validators weigh proposals to burn more fees and cut SOL issuance, but the plan needs more staker support to succeed.
Solana Proposal Could Increase SOL Burns 14-Fold
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Coindesk reported that Solana Solana validators are considering two linked proposals that would burn more transaction fees and reduce how quickly new SOL enters circulation.

What’s the scoop?

  • The proposals: SGP-0003 combines SIMD-0553, which would introduce new resource-based transaction fees, with SIMD-0550, which would accelerate Solana’s existing inflation reduction schedule.
  • More SOL burned: SIMD-0553 would charge transactions based partly on the network resources they request, with those new fees fully burned. CoinDesk estimates this could increase daily burns from roughly 650 SOL, worth $47,000, to between 7,500 and 9,000 SOL, worth as much as $650,000. t must be noted though that Solana issues roughly around 60,0000 SOL daily, so while 9,000 is a strong step, it would by no means make the chain deflationary.
  • Less SOL issued: SIMD-0550 would double Solana’s annual disinflation rate from 15% to 30%, accelerating the path to its 1.5% permanent floor in 2029 instead of 2032.
  • What happens next: The proposal currently has support from 24.94M SOL, or 5.8% of active stake. It needs support from 15% by August 18 before it can advance to a formal validator vote, leaving it roughly 40M SOL short. Helius currently accounts for nearly two-thirds of the support.


David Christopher

Written by David Christopher

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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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