Progress on Solana Supply Tightening Proposal: Community Turnout Rates All Below 17%, Still Need to Hit the 1/3 Participation Threshold

The Solana community is advancing two governance proposals, SGP-0002 and SGP-0003, aimed at tightening SOL token supply via a dual mechanism of reducing new issuance and increasing token burns. SGP-0003 (with detailed mechanisms outlined in SIMD-0553) proposes introducing a resource consumption-based transaction fee model, charging fees based on network resources consumed by transactions. It is projected to lift daily SOL burns from the current ~650 tokens (≈$65,000) to 7,500–9,000 tokens (≈$750,000–$900,000). The other proposal, SGP-0002 (detailed in SIMD-0550), plans to double SOL’s annual inflation reduction rate, bringing the 1.5% minimum inflation target forward to 2029 (from the original 2032). It is expected to cut ~18.9 million SOL in new issuance over the next six years, worth ~$1.89 billion at current prices. Both proposals have entered the voting phase. SGP-0002 has a 16.71% voter turnout, with 16.24% in favor, 0.31% against, and 0.16% abstentions. SGP-0003 has a 13.53% turnout, 13.23% in favor, 0.27% against, and 0.03% abstentions. Both require a 1/3 participation rate to pass. If the proposals secure sufficient support, the Solana network will further optimize its token supply structure by combining reduced new issuance and higher transaction fee burns. Voting remains ongoing, with future progress dependent on voter participation and support levels.