Solana Proposes Supply Tightening Plan: Daily SOL Burn Value Could Increase from $47,000 to $650,000

BlockBeats News, August 5th. The Solana community is advancing two governance proposals aimed at reducing the additional issuance of SOL and increasing the scale of network fee burning to tighten the token supply.

One of the proposals, SIMD-0553, suggests introducing a resource-based transaction fee mechanism that charges fees based on the network resources a transaction consumes. It is expected to increase the daily SOL burn from the current approximately 650 tokens (about $47,000) to 7,500 to 9,000 tokens (about $650,000).

Another proposal, SIMD-0550, plans to double the rate of reduction in SOL's annual inflation, bringing forward the target of 1.5% minimum inflation to be achieved by 2029 instead of the original plan of 2032. This proposal is expected to reduce the issuance of about 18.9 million SOL over the next 6 years, valued at approximately $1.36 billion at the current price.

Currently, both proposals have received support from some validating nodes. As of the latest data, approximately 24.94 million SOL tokens have participated in signaling, accounting for 5.8% of the 43.265 million staked SOL, still about 39.95 million SOL away from the 15% threshold required to enter the formal voting stage. The deadline for signaling support is August 18th.

There are currently a total of 16 validating nodes expressing support, with the infrastructure firm Helius contributing about 16.03 million SOL tokens, representing close to two-thirds of the current supporting quantity.

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 tokens, it is still lower than the current daily additional issuance of about 60,000 tokens. Therefore, the community will promote the burning mechanism alongside the issuance reduction as two linked reforms.

If the proposal receives sufficient support from validating nodes, the Solana network will improve its long-term tokenomics through a dual mechanism of "reducing new supply + increasing burn."