Solana Operators Vote on Token Supply Cuts

Solana's network operators are voting on two proposals to reduce the future supply of its native token, SOL. The first proposal, which would cut the rate at which new tokens are created by 30% each year instead of 15%, is passing with 68.77% support. This would bring the rate of new token creation down to its minimum of 1.5% a year around 2029, resulting in roughly 18.9 million fewer SOL being created over six years.

The second proposal, which would change transaction fees and destroy more SOL, has 62.72% support but is falling short of the two-thirds majority needed to pass. This plan would lift daily burns from roughly 650 SOL to between 7,500 and 9,000, with the upper end worth about $800,000 a day at current prices.

The votes are part of Solana's first-ever on-chain governance, which gives operators a formal vote on major changes to how the network works. The two-thirds threshold requires participation from one-third of the network stake and support from two-thirds of participating stakeholders.