Solana validators are close to moving forward with a governance proposal that would sharply increase the amount of SOL burned each day while cutting the pace at which new tokens enter circulation.
If adopted, the package would curb the network token’s inflation rate and tighten supply. In theory, that could support SOL’s price if demand stays flat or rises.
SGP-0003 combines two supply-focused proposals
The proposal, known as SGP-0003, bundles two previously introduced Solana Improvement Documents into a single governance package designed to tighten SOL supply.
SIMD-0553 would introduce resource-based transaction fees. Under that change, daily SOL burns would rise from about 650 SOL, roughly $48,000, to between 7,500 and 9,000 SOL, or as much as about $668,000, depending on network activity.
SIMD-0550 would also double Solana’s annual disinflation rate to 30%, moving the network’s 1.5% inflation floor forward from 2032 to 2029.
A token burn permanently removes cryptocurrency from circulation by sending it to an unusable wallet address. By pairing larger burns with lower issuance, the proposal aims to slow the growth of SOL’s circulating supply.
Support phase is underway, with an Aug. 18 deadline
The package is now in Solana’s support phase and must win backing from validators. As of Tuesday morning, it had support from 63 million SOL, or just over 14.4% of the network’s staked supply.
That left about 3 million SOL still needed to reach the required threshold of 65.16 million SOL before the Aug. 18 deadline.
According to the Solana Validator Governance dashboard, the proposal has 73 supporters so far, including Helius, Jupiter, Staking Facilities, Drift, OtterSec, and Solana Compass.
In a post dated Aug. 2, 2026, mert wrote, "the solana deflation & burning proposals will go to an early vote starting tomorrow," adding that if they secure at least 15% of stake signaling support, they would move on to a final vote after that.
Higher burns alone would not make SOL deflationary
Decrypt noted that the higher burn rate by itself would not make SOL deflationary. Solana is currently issuing about 60,000 SOL per day.
The companion issuance proposal is meant to reduce new supply, while the fee changes increase the amount of SOL permanently removed from circulation. Taken together, the two changes would slow the expansion of circulating supply.
If the package reaches the required support threshold, it will proceed to the discussion phase before a formal validator vote.
SOL trades around $74 as Myriad traders stay bearish
At the time of the report, SOL was changing hands for around $74, giving the token a market capitalization of about $43 billion. The token was up slightly on the day, though it remained well below its all-time high of $293 reached more than a year ago.
On Myriad, the prediction market developed by Decrypt parent company Dastan, traders were still bearish. The market was assigning 70% odds that SOL would fall to $40 before recovering to $160.