Home›Crypto›Market Structure›Solana validators seek more support for higher daily S…

Solana validators seek more support for higher daily SOL burns

The two linked proposals would add resource-based fees and faster disinflation, aiming for a 1.5% terminal inflation rate by 2029 instead of 2032.

Reported · Written up by our desk · Market Structure

CoinDesk reports Solana validators are signaling support for two linked governance proposals, SIMD-0550 and SIMD-0553, that would reduce new SOL issuance while increasing the amount of SOL burned.

SIMD-0553 would introduce resource-based transaction fees and is designed to raise daily SOL burns from about 650 SOL to between 7,500 and 9,000 coins, which CoinDesk estimates could mean up to roughly $650,000 a day at current prices.

CoinDesk adds that SIMD-0550 would double the annual disinflation rate to 30%, pulling Solana’s 1.5% terminal inflation target forward to 2029 from 2032 and removing about 18.9 million SOL of emissions over six years, worth about $1.36 billion.

To advance to an actual vote, the proposals need roughly 40 million more SOL in validator support to clear a 15% signaling threshold by Aug. 18. CoinDesk says initial backing totals 24.94 million SOL, or 5.8% of the 432.65 million SOL staked, with Helius leading at 16.03 million SOL.

Latest closeSolana $73.38 ▼0.1%

More like this

Sources