According to the GitHub Solana Improvement Document (SIMD) discussion forum, developer cavemanloverboy proposed improving the SOL token economy through a resource consumption-based fee burning mechanism. The proposal suggests charging a base fee of 0.1 lamport per cost unit for each transaction, with the full amount burned. Currently, the network burns only about 648 SOL per day in base fees, a negligible amount compared to the daily inflation rate of approximately 60,000 SOL. Based on community testing data, if implemented, this mechanism is expected to add approximately 1,500–1,800 SOL in daily burning, resulting in a fee impact of about 3–5% on market makers and a significantly higher impact on regular users’ transaction costs (with some scenarios seeing increases exceeding 600%). The proposal explicitly states that this mechanism can only be activated after the Alpenglow consensus upgrade, and it remains in the community discussion phase.
Solana Community Proposes Base Fee Burning Mechanism to Enhance SOL Tokenomics
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Summary
A Solana community member proposed a base fee burning mechanism to enhance SOL tokenomics by linking fees to resource consumption. The plan charges 0.1 lamport per cost unit and burns all fees. The network currently burns approximately 648 SOL per day, a small amount compared to the daily inflation of 60,000 SOL. Testing indicates the mechanism could increase daily burning to 1,500–1,800 SOL. The proposal requires activation following the Alpenglow network upgrade and is still under community review.
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