A new Solana proposal would take daily SOL burns from $47,000 to $650,000
New Solana improvement proposals aim to increase network transaction burns and reduce token issuance to manage supply dynamics. These changes, if passed, would significantly increase the daily burn rate of SOL tokens and accelerate the path toward a terminal inflation floor.
Why it matters
These technical changes could fundamentally alter the tokenomics of the Solana ecosystem, impacting investor sentiment and the long-term value of the SOL cryptocurrency.
SIMD-0553 introduces resource-based fees, charging transactions according to the network resources they consume. That would lift daily burns from around 650 SOL, about $47,000 at current prices , to between 7,500 and 9,000, or up to roughly $650,000 a day.
SIMD-0550 doubles the annual disinflation rate to 30%, which pulls Solana's 1.5% terminal inflation floor forward to 2029 from 2032 and removes about 18.9 million SOL of emissions over six years, worth roughly $1.36 billion.
SIMD stands for Solana Improvement Document, the technical proposal process core developers use for protocol changes. SGP is Solana Governance Proposal, the newer stake-weighted vote that sits above it.
The two proposals impact supply from both ends, burning more of what exists while issuing less of what is new. Solana's inflation rate currently sits near 3.8%, down from an 8% start under a schedule that cuts 15% a year.
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