Home›Crypto›Market Structure›Solana validators near vote on higher daily SOL burn

Solana validators near vote on higher daily SOL burn

A governance proposal would raise daily SOL burns from about 650 SOL to between 7,500 and 9,000 SOL and shift the network’s inflation floor to 2029.

Reported · Written up by our desk · Market Structure

Solana validators are considering a governance package, SGP-0003, that would increase daily SOL burns by changing the network fee model and accelerating the schedule that reduces inflation, according to Decrypt. The proposal combines two Solana Improvement Documents into one package aimed at tightening SOL supply.

Under the plan tied to SIMD-0553, Solana would introduce resource based transaction fees that would lift daily SOL burns from about 650 SOL to between 7,500 and 9,000 SOL depending on network activity. The companion change under SIMD-0550 would double Solana’s annual disinflation rate to 30%, moving the network’s 1.5% inflation floor ahead from 2032 to 2029.

Token burn sends SOL to an unusable wallet address, which permanently removes it from circulation. Decrypt reports that by pairing higher burns with lower issuance, the proposal would reduce the growth rate of SOL’s circulating supply, though the burn rate alone would not make SOL deflationary.

As of Tuesday morning, the proposal had backing from 63 million SOL, or just over 14.4% of Solana’s staked supply, leaving about 3 million SOL to reach a 65.16 million SOL threshold before an Aug. 18 deadline. Decrypt also notes that Solana trades as SOL and was last around $74, with a market capitalization of about $43 billion.

Latest closeSolana $74.16 ▲0.9%

More like this

Sources