Solana Governance Proposals Set to Slash SOL Issuance by $1.4B-$1.5B
Solana's governance proposals could significantly alter the protocol's supply dynamics over the next six years. The proposed changes, SIMD-550 and SIMD-553, aim to reduce Solana's issuance by $1.4 billion to $1.5 billion.
According to 21Shares data, SIMD-550 would double the annual disinflation rate from -15% to -30%, moving Solana's path to its 1.5% terminal inflation rate up from around 2032 to the first half of 2029.
SIMD-553 introduces a burn fee tied to compute units used in financial transactions on the network, which could increase daily SOL burns by 7,500 to 9,000 SOL under this new structure. This represents a significant jump from the current range of 600 to 800 SOL.
The combined effect of these proposals is projected to sharply raise daily SOL burns and compress staking yield for validators and holders.