New Solana vote could ramp daily SOL burns to $800,000 and slow new token creation
Solana is currently voting on three proposals that could fundamentally alter its tokenomics by increasing the burn rate of SOL and slowing the creation of new tokens. These changes aim to reduce supply inflation, though the governance process faces procedural questions regarding the sequence of the votes.
Why it matters
These proposals represent a significant shift in Solana's monetary policy, which could impact the long-term value and scarcity of the SOL token.
The votes are weighted by how much SOL is staked, meaning locked up to help run the network. That gives the say to validators, the operators who run Solana's computers, and to ordinary holders who have handed their coins to a validator to stake on their behalf.
Two of the three proposals address supply. SGP-0002 speeds up the rate at which Solana stops printing new SOL. The network currently cuts the amount it creates by 15% a year, and this would double that to 30%, reaching the floor sooner.
SGP-0003 changes what a transaction costs and where the money goes. The fee would be split in two. A fixed portion goes to whoever produces the block, and a separate portion, scaled by how much computational work the transaction demands, is permanently destroyed.
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