Solana Proposals Could Increase Daily SOL Burn by 1,283% to $650,000

Solana governance advances SIMD-0553 and SIMD-0550 to tighten supply. Daily burn may rise to $650k while inflation targets accelerate, signaling major tokenomics shift.

Woofun AI reports that the Solana community is advancing two governance proposals designed to reduce SOL issuance and increase fee burning. SIMD-0553 introduces a resource-based transaction fee model, potentially raising daily burns from approximately $47,000 to $650,000. SIMD-0550 accelerates the reduction of annual inflation, aiming to reach the 1.5% minimum target by 2029 rather than 2032, which would cut issuance by roughly 18.9 million SOL over six years.

Signaling support currently stands at 5.8% of staked SOL, with Helius contributing nearly two-thirds of the backing. The deadline for signaling is August 18th. Even with implementation, SOL remains inflationary as daily burns would still fall short of the 60,000 token daily issuance, necessitating the combined approach of supply reduction and increased burning.