Solana Validators Eye Proposal for Massive SOL Burn Increase
Solana validators are considering a governance proposal that would significantly increase daily SOL burns and reduce new token issuance.
The proposal, SGP-0003, combines two previous Solana Improvement Documents into a single package. It includes SIMD-0553, which introduces resource-based transaction fees, increasing daily SOL burns from about 650 SOL ($48,000) to between 7,500 and 9,000 SOL (up to $668,000), depending on network activity.
Additionally, it includes SIMD-0550, which would double Solana's annual disinflation rate to 30%, bringing the network's 1.5% inflation floor forward from 2032 to 2029.
The proposal has gained support from 63 million SOL (14.4% of staked supply) and requires another 3 million SOL before advancing to a formal vote on August 18.