Solana plans to advance a supply tightening scheme, with the daily SOL burn amount possibly increasing from $47,000 to $650,000

The Solana community is advancing two governance proposals aimed at reducing the new issuance of SOL and increasing the scale of network fee burns, thereby tightening the token supply. Among them, governance proposal SIMD-0553 suggests introducing a resource consumption-based transaction fee mechanism, charging fees based on the network resources consumed by transactions. It is expected to increase the daily burn of SOL from the current approximately 650 coins (about $47,000) to between 7,500 and 9,000 coins (about $650,000).

Another proposal, SIMD-0550, plans to double the rate of decline in SOL's annual inflation, bringing the minimum inflation target of 1.5% forward to 2029 instead of the originally planned 2032. This plan is expected to reduce the issuance of approximately 18.9 million SOL over the next six years, valued at about $1.36 billion at current prices. Currently, both proposals have received support from some validator nodes. As of the latest data, approximately 24.94 million SOL have participated in signaling votes, accounting for 5.8% of the 4.3265 million staked SOL, still about 39.95 million SOL short of the 15% threshold required to enter the formal voting phase. The deadline for supporting signals is August 18.

A total of 16 validator nodes have expressed support, with the infrastructure company Helius contributing approximately 16.03 million SOL, accounting for nearly two-thirds of the current support. However, even if SIMD-0553 is successfully implemented, SOL will not immediately enter a deflationary state. Based on a maximum daily burn of 9,000 coins, it is still lower than the current daily new issuance of about 60,000 coins. Therefore, the community is advancing the burn mechanism and the reduction of issuance as linked reforms. If the proposal receives sufficient support from validator nodes, the Solana network will improve its long-term token economic model through a dual mechanism of "reducing new supply + increasing burns."