Solana Community Advances Proposals to Curb Issuance and Boost Daily SOL Burns

BlockBeats reports that on August 5 the Solana community moved forward with two governance proposals designed to tighten SOL supply by cutting new issuance and increasing the amount of transaction fees burned. One proposal, SIMD0553, would introduce a resource-based transaction fee model that charges users based on the network resources their transactions consume. The change is projected to lift the daily SOL burn from about 650 SOL (roughly $47,000) to 7,500–9,000 SOL (around $650,000). The second proposal, SIMD0550, targets issuance by doubling the pace at which SOL's annual inflation rate declines. It would pull forward the 1.5% minimum inflation target to 2029 from 2032. At current prices, the proposal is expected to reduce issuance by about 18.9 million SOL over the next six years, valued at approximately $1.36 billion. Both proposals have garnered backing from a portion of validator nodes. Latest figures show about 24.94 million SOL has been used in signaling votes, equal to 5.8% of the 4.3265 million SOL staked, leaving roughly 39.95 million SOL still needed to meet the 15% threshold required to progress to formal voting. The signaling deadline is August 18. A total of 16 validator nodes have signaled support, with infrastructure firm Helius contributing about 16.03 million SOL—nearly two-thirds of the current backing. Even if SIMD0553 is adopted, SOL would not become deflationary immediately. At a peak burn rate of 9,000 SOL per day, burns would still trail the current daily issuance of about 60,000 SOL. For that reason, the community is pursuing burn expansion and issuance reductions in tandem, aiming to strengthen Solana's long-term token economics through a dual approach of lower new supply and higher burns.