Solana plans to advance a supply tightening proposal, with the daily value of SOL burned potentially rising from $47,000 to $650,000.

The Solana community is advancing two governance proposals aimed at reducing new SOL issuance and scaling up network fee burns to tighten the token’s supply. Proposal SIMD-0553 would introduce a resource-based transaction fee mechanism, charging fees based on the network resources each transaction consumes. It is projected to lift daily SOL burns from the current ~650 tokens (≈$47,000) to 7,500–9,000 tokens (≈$650,000). The second proposal, SIMD-0550, plans to double the rate at which Solana’s annual inflation declines, pushing the 1.5% minimum inflation target to 2029 instead of the original 2032 timeline. This measure is expected to cut ~18.9 million SOL from issuance over six years, worth ~$1.36 billion at current prices. To date, both proposals have garnered support from some validators. As of the latest data, ~24.94 million SOL have been cast in signal voting, representing just 5.8% of the 4.3265 million staked SOL. The community still needs ~39.95 million more SOL to hit the 15% threshold required to move to formal voting. The signal voting period closes on August 18. Sixteen validators have expressed support, with infrastructure firm Helius contributing ~16.03 million SOL—nearly two-thirds of the current total support. Notably, even if SIMD-0553 is approved, SOL will not immediately enter a deflationary state: at the maximum daily burn rate of 9,000 tokens, burns would still fall short of the current daily new SOL issuance of ~60,000. As such, the community is pushing both reforms—burn mechanism upgrades and lower issuance—together. If the proposals secure enough validator backing, Solana will revamp its long-term tokenomics via the dual mechanism of reduced new supply and increased burns.