Solana Proposals Could Cut SOL Issuance by Billions Over Six Years

Two Solana proposals are currently being voted on by validators and delegators. These votes could potentially accelerate SOL disinflation, increase transaction-fee burns, and reduce SOL issuance by $1.4 billion to $1.5 billion over six years.

The first proposal, SIMD-0550, would double the annual disinflation rate from 15% to 30%. This change would not immediately halve the current inflation rate but rather accelerate its decline toward Solana's existing 1.5% terminal rate. According to estimates, the network could reach this floor in approximately 2.8 years, during the first half of 2029, instead of around 2032.

Lower issuance would result in reduced staking rewards for validators and delegators. Nominal staking yield is estimated to fall from around 5.25% to 4.34% in the first year, 3% in the second, and 2.25% in the third under the faster schedule.

The second proposal, SIMD-0553, would replace the existing base fee with two components: a 2,500-lamport inclusion fee for the block leader and a resource fee that is completely burned. The terminal rate could increase daily burns from about 648 SOL to between 7,500 and 9,000 SOL at current activity.

Both proposals need participation from at least one-third of network stake and support from two-thirds of participating stake, excluding abstentions, under the proposed governance rules.