Solana Validators Weigh Governance Change with Resource-Based Fees and Higher Disinflation Rate

A governance proposal on Solana's network seeks to alter the SOL token supply dynamics through two improvement documents. These documents, SIMD-0550 and SIMD-0553, aim to change circulation from opposite ends.

SIMD-0553 introduces resource-based fees for each transaction, which would raise the daily SOL burn from 650 tokens, approximately $47,000, to between 7,500 and 9,000. This equates to roughly $650,000 per day at the top of the projected range.

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