Solana Validators Back Proposals for Higher Burn Rates and Faster Disinflation

Solana validators have begun signaling support for two linked governance proposals that would reduce new SOL issuance and increase the amount of SOL burned.

The first proposal, SIMD-0553, introduces resource-based transaction fees, which would lift daily SOL burns from around $47,000 to between $525,000 and $650,000 per day. The second proposal, SIMD-0550, doubles the annual disinflation rate to 30%, accelerating Solana's 1.5% terminal inflation floor to 2029 instead of 2032.

The proposals have backing from 24.94 million SOL in stake, led heavily by validator Helius, but must attract roughly 40 million more SOL in support to clear a 15% signaling threshold before an actual vote by August 18th.

Even with the increased burn rate, the proposals would not make SOL deflationary, as daily inflation is still expected to outpace daily burns.