BlockBeats report: On August 5, the Solana community is advancing two governance proposals aimed at reducing new SOL issuance and increasing the volume of network transaction fees burned, thereby tightening token supply.
Among these, governance proposal SIMD-0553 proposes introducing a resource-based transaction fee mechanism, charging fees according to the network resources consumed by transactions, which is expected to increase the daily SOL burn rate from the current approximately 650 SOL (about $47,000) to 7,500 to 9,000 SOL (about $650,000).
Another proposal, SIMD-0550, aims to double the rate at which SOL’s annual inflation decreases, bringing forward the target of a 1.5% minimum inflation rate from 2032 to 2029. This proposal is expected to reduce SOL issuance by approximately 18.9 million tokens over the next six years, valued at around $1.36 billion at current prices.
Currently, both proposals have received support from a portion of the validation nodes. As of the latest data, approximately 24.94 million SOL have participated in signaling votes, representing 5.8% of the 4.3265 million SOL staked, leaving a gap of about 39.95 million SOL to reach the 15% threshold required to advance to the formal voting stage. The signaling support deadline is August 18.
A total of 16 validator nodes have expressed support, with infrastructure company Helius contributing approximately 16.03 million SOL, accounting for nearly two-thirds of the current support.
However, even if SIMD-0553 is successfully implemented, SOL will not immediately become deflationary. At the maximum daily burn rate of 9,000 SOL, this still falls below the current daily issuance of approximately 60,000 SOL. Therefore, the community is advancing both the burn mechanism and issuance reduction reforms together.
If the proposal gains sufficient support from validator nodes, the Solana network will enhance its long-term token economics through a dual mechanism of reducing new supply and increasing burns.