Solana Validators Push for Governance Proposal to Shake Up Token Supply

The Solana network is considering a governance proposal that could fundamentally alter how its SOL token enters and leaves circulation. Two separate improvement documents, SIMD-0550 and SIMD-0553, aim to introduce resource-based fees for transactions on the network. This would increase the daily SOL burn from approximately $47,000 to between $650,000 per day.

The proposals also seek to double the annual disinflation rate to 30%, bringing forward the inflation floor of 1.5% to 2029 and eliminating around $1.36 billion in emissions over six years. However, even with these changes, the network would still emit more SOL through inflation than it burns.

The proposals need to reach a formal vote, which requires surpassing the 15% threshold of staked SOL, approximately 64.9 million tokens. Currently, accumulated support stands at 24.94 million, contributed by 16 validators on Solana, with Helius infrastructure accounting for 16.03 million of that total.