Solana Developers Push Plan to Scale Daily SOL Burns From Thousands to Hundreds of Thousands

Here is another rewritten version with a sharper, publication-ready tone:

Solana is considering a major supply adjustment through a new governance proposal that combines higher SOL burns with a faster reduction in token emissions. However, the initiative still requires nearly 40 million additional SOL in validator support over the next two weeks before moving to a formal vote.

Validators have started backing a pair of proposals that could change how SOL enters and exits circulation, potentially influencing long-term supply dynamics and market valuations.

The first proposal, SIMD-0553, introduces a resource-based fee structure that charges transactions based on the computational resources they consume. If implemented, the change could lift daily SOL burns from around 650 tokens — worth approximately $47,000 — to between 7,500 and 9,000 SOL, bringing daily burn value close to $650,000.

The second proposal, SIMD-0550, targets Solana’s inflation schedule by doubling the annual disinflation rate to 30%. This would accelerate the network’s path to a 1.5% inflation floor, moving it forward to 2029 from the current 2032 timeline, while reducing estimated emissions by 18.9 million SOL over six years, valued at roughly $1.36 billion.

SIMD, or Solana Improvement Document, is the technical process used by developers to introduce protocol changes. SGP, or Solana Governance Proposal, is a newer stake-weighted voting system designed for broader validator participation.

Together, the proposals aim to tighten SOL supply by increasing token destruction while reducing future issuance. Solana’s inflation rate currently stands near 3.8%, down from its initial 8% level under a schedule that lowers inflation by 15% annually.

Support Threshold Becomes Key Test

The proposals have attracted 24.94 million SOL in validator support so far, representing around 5.8% of the 432.65 million SOL currently staked. That places them at roughly 38% of the required 15% threshold needed to advance to a formal vote.

Validators still need to provide another 39.95 million SOL in support, worth about $2.9 billion at current prices, before the signaling period closes on August 18.

Sixteen validators have participated so far, representing about 2.3% of the total validator set. Helius accounts for the largest share with 16.03 million SOL, contributing nearly two-thirds of current support. Blueshift follows with 3.6 million SOL, while Temporal Emerald has added 1.24 million SOL.

Higher Burns Alone Won’t Make SOL Deflationary

Despite the potential increase in burns, the fee proposal by itself would not turn SOL into a deflationary asset. Even at the upper estimate of 9,000 SOL burned daily, the network would still issue roughly 60,000 SOL per day through inflation.

That is why the proposals are being considered together. SIMD-0553 focuses on increasing the amount of SOL removed from circulation, while SIMD-0550 reduces the flow of newly created tokens.

Helius, which provides the largest share of current support, also employs the engineer behind SIMD-0550.

The 15% signaling requirement was introduced by the Solana Foundation in July to ensure that only proposals with significant ecosystem impact reach validator-wide voting, while routine technical upgrades continue through the existing SIMD process.

The remaining challenge is whether enough large validators will join the effort before the deadline. With two weeks left, the proposals still require substantial additional backing to move forward.