Solana Validators Ponder Sharp Increase in Daily Token Burns

Solana validators are considering a proposal to increase daily SOL burns through a new fee model. The proposal, SGP-0003, combines two previously introduced Solana Improvement Documents into a single governance package aimed at tightening SOL's supply.

The proposed fee model would introduce resource-based transaction fees, increasing daily SOL burns from about 650 SOL (roughly $48,000) to between 7,500 and 9,000 SOL (up to about $668,000), depending on network activity. This would reduce the growth of SOL's circulating supply.

The proposal also includes accelerating the network's declining inflation schedule by doubling Solana's annual disinflation rate to 30%, bringing the network's 1.5% inflation floor forward from 2032 to 2029.

As of Tuesday morning, the proposal had support from 63 million SOL, or just over 14.4% of the network's staked supply, leaving about 3 million SOL needed to reach the threshold of 65.16 million SOL before the Aug. 18 deadline.