Solana Proposes Supply Tightening Plan: Daily SOL Burn Value Could Increase from $47,000 to $650,000

August 5th, the Solana community is advancing two governance proposals aimed at reducing SOL's newly issued supply and increasing the scale of network fee burning to tighten the token supply.

One of the proposals, SIMD-0553, suggests introducing a resource-based transaction fee mechanism, charging fees based on the network resources a transaction consumes. It is expected to increase the daily SOL burn from the current approximately 650 tokens (about $47,000) to 7500 to 9000 tokens (about $650,000).

Another proposal, SIMD-0550, plans to double the speed of reducing SOL's annual inflation rate, bringing forward the 1.5% minimum inflation rate target to 2029 instead of the original plan of 2032. This proposal is expected to reduce the SOL issuance by about 18.9 million tokens over the next 6 years, valued at approximately $1.36 billion at the current price.

Currently, both proposals have received support from some validation nodes. As of the latest data, about 24.94 million SOL tokens have participated in signaling, accounting for 5.8% of the 43.265 million staked SOL, still about 39.95 million SOL away from the required 15% threshold to enter the formal voting stage. The signaling deadline is August 18th.

There are currently a total of 16 validation nodes expressing support, with the infrastructure company Helius contributing approximately 16.03 million SOL tokens, accounting for nearly two-thirds of the current support.

However, even if SIMD-0553 is successfully implemented, SOL will not immediately enter a deflationary state. Calculated at the maximum daily burn of 9000 tokens, it is still lower than the current daily issuance of about 60,000 tokens. Therefore, the community will push forward the burning mechanism along with the reduction in issuance volume as two linked reforms.

If the proposal receives enough validation node support, the Solana network will improve its long-term tokenomics through a dual mechanism of "reducing new supply + increasing burning."