According to ChainCatcher, the Solana community is pushing forward with two governance proposals designed to tighten SOL supply by cutting new issuance and increasing the amount of network fees burned.
One proposal targets fee burn, the other speeds up inflation reduction
The first measure, SIMD-0553, would introduce a transaction fee model based on resource consumption, charging fees according to the network resources a transaction uses. The proposal estimates that daily SOL burn could rise from about 650 SOL, or roughly $47,000, to between 7,500 and 9,000 SOL, or about $650,000.
A second proposal, SIMD-0550, would double the pace of Solana’s annual inflation decline, moving the network’s 1.5% minimum inflation target forward to 2029 from the current 2032 schedule. The plan is expected to reduce SOL issuance by about 18.9 million tokens over the next six years, worth roughly $1.36 billion at current prices.
Support is building, but the proposals are still short of the formal voting threshold
Both proposals have already received backing from some validators. Based on the latest data, about 24.94 million SOL had been committed in signaling votes, equal to 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 a formal voting stage. The deadline for signaling support is Aug. 18.
So far, 16 validators have expressed support. Infrastructure company Helius accounts for about 16.03 million SOL, representing nearly two-thirds of current backing.
Higher burn alone would not make SOL deflationary right away
ChainCatcher said that even if SIMD-0553 is implemented, SOL would not immediately enter a deflationary phase. At the upper end of the estimate, 9,000 SOL burned per day would still be below the current daily issuance level of about 60,000 SOL.
That is why the community is advancing the burn mechanism and the issuance reduction plan together. If the proposals gain enough validator support, Solana would use a two-part approach — less new supply and more burning — to improve its long-term token economic model.