Two Solana governance proposals aimed at tightening SOL supply are still short of the participation threshold required to pass. The measures, SGP-0002 and SGP-0003, are designed to reduce new issuance and raise token burn through separate mechanisms. SGP-0002 would double the pace of annual inflation reduction, bringing Solana’s 1.5% minimum inflation target forward to 2029 from 2032. Based on the figures cited in the proposal, that change would cut roughly 18.9 million SOL from issuance over the next six years, valued at about $1.89 billion at current prices. SGP-0003, tied to a resource-based transaction fee model, is expected to lift daily SOL burn from about 650 tokens, or around $65,000, to between 7,500 and 9,000 SOL, or roughly $750,000 to $900,000. Voting is already underway, but neither proposal has yet reached the one-third participation mark. Current turnout stands at 16.71% for SGP-0002 and 13.53% for SGP-0003, with support heavily outweighing opposition in both cases.

As the Solana community prepares to vote on SIMD-0550 and SIMD-0553, Max Resnick, former head of research at Consensys and now a key developer in the Solana ecosystem, has laid out a broader argument about how Layer 1 blockchains should be valued. His central point is that growth narratives alone — rising developer counts, higher transaction volumes, or claims that a token could become money — do not amount to a complete valuation framework unless they explain how economic activity flows back to token holders. Resnick argues that L1 tokens can be analyzed with logic similar to equities. In his view, fee burns resemble stock buybacks, while distributing fees to stakers looks more like dividends. By contrast, inflationary staking rewards should not automatically be treated as revenue or operating cost, because they largely reflect a transfer of value between token holders rather than net value created by the network. He also says analysts need consistent standards for revenue, cost and total supply. The piece goes on to examine fee quality, pricing power and fee design. Resnick says the market may overestimate the durability of bull-market fee spikes while underestimating the moat created by network effects on mature chains such as Solana and Ethereum. He also points to a structural issue in resource-based pricing and highlights Anatoly Yakovenko’s proposal to charge 0.5 basis points on SPL token transfers as one path toward more value-sensitive fees.

Ethereum and Solana are wrestling with the same policy problem: leave staking rewards where they are, and capital keeps concentrating around large validators and institutional staking providers; cut those rewards, and smaller node operators may be pushed out first. The debate is no longer just about token inflation. It now reaches into validator economics, DeFi collateral structures, and the practical limits of decentralization. On Ethereum, researchers including Justin Drake and Jérôme de Tychey published the early-stage EIP-8363 draft on Aug. 4. The proposal would progressively burn a larger share of validator rewards as the total amount of staked ETH rises. At 60.25 million staked ETH, roughly half of total supply, the burn rate would reach 100%, taking inflation-based staking yield to zero. Critics including Aave founder Stani Kulechov, SharpLink CEO Joseph Chalom, and ether.fi’s Mike Silagadze pushed back within days. Solana is dealing with a parallel set of tensions. Its SIMD-0550 and SIMD-0553 proposals are under vote through Aug. 18, with passage requiring support from more than 66.67% of staked SOL. The article argues that both chains are being forced to choose between different paths to centralization, rather than a clean route away from it.

Solana is trading at $75.06, down 1.22% on the day, as the token sits just above its 50-day exponential moving average after retreating from a late-August spike near $90. Decrypt said the broader market backdrop remains soft, with Bitcoin stuck between roughly $62,000 support and $67,000 resistance and Ethereum pulling back to the $1,825-$1,850 area after failing to hold higher levels. That weakness in the two largest crypto assets is limiting how far any rebound in SOL can run. Two potential catalysts are in focus. The first is Solana’s planned Alpenglow consensus upgrade, which is intended to reduce finality to 100-150 milliseconds. It has entered community validator testing and is targeted for mainnet activation in August, though the date is still a target rather than a fixed event. The second is SGP-0003, a tokenomics proposal that combines SIMD-0553 and SIMD-0550 to tighten supply. According to the report, the changes could lift daily SOL burns from about 650 SOL to 7,500-9,000 SOL and bring forward the 1.5% inflation floor from 2032 to 2029. On the chart, RSI sits at 50.5 and ADX at 11.9, pointing to neutral momentum and weak trend strength. Decrypt framed the setup as a bounce within a downtrend, not a confirmed reversal, with $77.50, $85, $72, $70.58, and roughly $65 acting as key levels.

Solana remained the top chain by decentralized exchange volume in the second quarter of 2026, but the network’s underlying revenue picture weakened as both trading activity and fee generation fell from earlier highs. In a quarterly report by Galaxy Digital Vice President of Research Lucas Tcheyan, Solana’s DEX volume dropped 45% from the previous quarter even as it held the No. 1 position for a seventh straight quarter. Network fees fell about 44%, while application fees declined 31% to $552 million, with revenue still heavily concentrated in meme-coin activity. At the same time, the report argues that Solana’s larger story is no longer just low-cost, high-throughput execution. The chain is trying to reposition itself as infrastructure for tokenized equities, stablecoins, lending, and other forms of on-chain finance. That shift showed up most clearly in real-world assets. Solana’s RWA value crossed $3 billion in June for the first time, tokenized stocks became the largest single RWA category on the chain, and Solana handled more than 95% of all tokenized equity trading during the quarter. The report says the key question for the second half of 2026 is whether that tokenized asset base can be turned into durable borrowing demand, collateral usage, trading activity, and fee income. In other words, the issue is no longer whether Solana can support these assets technically. It is whether the network can convert new issuance and distribution into lasting economic value.

The Solana community is moving ahead with two governance proposals aimed at tightening SOL supply from both sides of the token-economics equation: lower issuance and higher fee burns. One proposal, SIMD-0553, would introduce a resource-based transaction fee model that charges users according to the network resources their transactions consume. Based on the estimates cited, that could raise daily SOL burns from roughly 650 tokens, or about $47,000 at current prices, to 7,500-9,000 SOL, worth about $650,000. A second proposal, SIMD-0550, would double the pace of Solana’s annual inflation decline, bringing the network’s 1.5% minimum inflation target forward to 2029 from 2032. Over the next six years, that change is expected to reduce SOL issuance by about 18.9 million tokens, valued at roughly $1.36 billion at current prices. Support has started to build among validators, but the proposals have not yet cleared the threshold needed for a formal vote. Signal voting currently represents 5.8% of staked SOL, with backing open until Aug. 18.

The Solana community is moving ahead with two governance proposals aimed at tightening SOL supply from both sides of the tokenomics equation: lower issuance and higher fee burning. One proposal, SIMD-0553, would introduce a resource-based transaction fee model that charges users according to the network resources their transactions consume. Based on the figures cited in the proposal, that could lift daily SOL burn from about 650 SOL, or roughly $47,000, to between 7,500 and 9,000 SOL, worth about $650,000. The second proposal, SIMD-0550, seeks to double the pace of Solana’s inflation decline so the network reaches its 1.5% minimum inflation target in 2029 instead of 2032. The proposal is expected to reduce SOL issuance by about 18.9 million tokens over the next six years, with a value of roughly $1.36 billion at current prices. Support has started to form among validators, but the measures have not yet cleared the threshold for a formal vote. Around 24.94 million SOL had been used in signaling as of the latest data, equal to 5.8% of 432.65 million staked SOL, leaving a gap of about 39.95 million SOL to reach the required 15% threshold. The signaling deadline is Aug. 18. Sixteen validators have expressed support so far, with infrastructure company Helius accounting for about 16.03 million SOL, or nearly two-thirds of current support.

Solana validators are nearing a key threshold for SGP-0003, a governance package that combines two previously introduced Solana Improvement Documents aimed at tightening SOL supply. One part, SIMD-0553, would introduce resource-based transaction fees and raise daily SOL burns from about 650 SOL to roughly 7,500-9,000 SOL, depending on network activity. The other, SIMD-0550, would double the network’s annual disinflation rate to 30% and bring Solana’s 1.5% inflation floor forward from 2032 to 2029. As of Tuesday morning, the proposal had backing from 63 million SOL, or just over 14.4% of the network’s staked supply, leaving about 3 million SOL short of the 65.16 million SOL threshold ahead of the Aug. 18 deadline. The proposal still needs to pass through a discussion phase and then a formal validator vote if it secures enough support. Decrypt also noted that higher burns alone would not make SOL deflationary, as Solana is currently issuing about 60,000 SOL per day. At publication, SOL was trading around $74 with a market capitalization of about $43 billion.