The Solana community is advancing two governance proposals designed to tighten SOL supply by reducing new issuance and increasing the amount of tokens burned through network fees.
One proposal targets fee burn, the other speeds up inflation reduction
Proposal SIMD-0553 would introduce a resource-based transaction fee model, with charges tied to the amount of network resources consumed by each transaction. Based on the estimates cited in the proposal process, daily SOL burns could rise from about 650 SOL to between 7,500 and 9,000 SOL. At current prices, that would lift the daily value of burned tokens from roughly $47,000 to about $650,000.
A separate proposal, SIMD-0550, would double the pace at which Solana’s annual inflation rate declines. That would move the network’s 1.5% minimum inflation target to 2029, instead of the previously planned 2032.
Under that framework, SOL issuance over the next six years is expected to be reduced by about 18.9 million tokens, worth roughly $1.36 billion at current prices.
Validator support has begun, but the proposals are still short of the formal voting threshold
Both proposals have already received support from some validators. According to the latest figures, about 24.94 million SOL has been committed in signal voting, representing 5.8% of 432.65 million staked SOL. That leaves the effort about 39.95 million SOL short of the 15% threshold required to move into the formal voting stage.
The deadline for support signals is Aug. 18. So far, 16 validators have expressed support. Infrastructure company Helius accounts for about 16.03 million SOL of that total, or nearly two-thirds of current backing.
Higher burns alone would not make SOL deflationary right away
Even if SIMD-0553 is implemented, SOL would not immediately become deflationary. At the top end of the estimate, daily burns of 9,000 SOL would still remain below current daily new issuance of about 60,000 SOL.
That is why the community is pushing the burn reform and the issuance-cut proposal together. If the measures win enough validator support, Solana would adjust its long-term token model through a dual mechanism: less new supply and more token burn.