Solana proposals target higher SOL burns and faster disinflation

Solana validators are signaling support for two linked proposals that would reduce new SOL issuance while increasing the amount of tokens burned through transaction fees. If adopted, the changes could raise daily burns from about 650 SOL, worth roughly $47,000, to as many as 9,000 SOL, or approximately $650,000 at current prices.

A two-part change to SOL supply

The proposed package combines SIMD-0553, which would introduce resource-based transaction fees, with SIMD-0550, which would accelerate Solana’s disinflation schedule. The fee overhaul would charge transactions according to the network resources they consume, potentially increasing the amount of SOL destroyed as demand for block space rises.

The second proposal would double the annual disinflation rate to 30%, bringing Solana’s 1.5% terminal inflation rate forward to 2029 from 2032. The change is estimated to remove about 18.9 million SOL from projected emissions over six years, equivalent to roughly $1.36 billion at current prices.

• Current inflation is approximately 3.8%, down from an initial rate of 8%.
• Projected daily burns under SIMD-0553: 7,500 to 9,000 SOL.
• Estimated daily inflation: about 60,000 SOL.
• The fee change alone would therefore not make SOL deflationary.

The proposals are being bundled because they affect both sides of Solana’s supply equation: SIMD-0550 would reduce the amount of new SOL entering circulation, while SIMD-0553 would increase the amount removed through fees.

Validator support remains below the threshold

The proposals currently have support from 24.94 million SOL in stake, representing approximately 5.8% of the 432.65 million SOL staked on the network. That is about 38% of the 15% signaling threshold required before the proposal can proceed to an actual vote.

Validators have until Aug. 18 to signal support. They must attract roughly 39.95 million additional SOL, worth about $2.9 billion at current prices, to clear the gate. Sixteen validators have signaled so far, or approximately 2.3% of the validator set.

Infrastructure company Helius accounts for 16.03 million SOL of the current total, close to two-thirds of all support. Blueshift has signaled 3.6 million SOL, followed by Temporal Emerald with 1.24 million SOL. Helius also employs the engineer behind SIMD-0550, adding a governance connection that may draw scrutiny as signaling continues.

What This Means

If approved, the proposals would make Solana’s monetary policy more responsive to network usage and reduce long-term issuance. However, the projected burn remains substantially below daily inflation, meaning the changes would tighten supply growth rather than immediately make SOL deflationary. The immediate test is political and organizational: the package must secure support from several more large validators before the Aug. 18 deadline. Until it clears the 15% threshold and wins a formal vote, the proposed supply changes remain uncertain.