Solana Validators Push for Token Supply Shake-up with Governance Proposal

A governance proposal on the Solana network seeks to alter the SOL token supply dynamics through two improvement documents. The proposals, SIMD-0550 and SIMD-0553, would introduce resource-based fees for transactions and change the inflation rate. SIMD-0553 would raise the daily SOL burn from 650 tokens to between 7,500 and 9,000, equivalent to around $650,000 per day.

SIMD-0550 doubles the annual disinflation rate to 30%, moving the inflation floor of 1.5% forward to 2029 instead of 2032. This would eliminate approximately 18.9 million SOL in emissions over six years, valued at around $1.36 billion.

However, even with the increased burn, the network still emits 60,000 tokens daily through inflation, meaning the change alone wouldn't make Solana's token deflationary. The proposals are being presented together to address this issue.