Solana Validators Weigh in on Proposals to Cut SOL Supply

Solana validators have begun voting on three governance proposals that could significantly impact the network's token supply. The votes, which started Sunday and are scheduled to run until Thursday at 15:30 UTC, will determine the fate of two proposals aimed at reducing SOL issuance and increasing the burn rate.

The first proposal, SGP-0002, would accelerate Solana's declining inflation schedule by doubling the annual reduction rate from 15% to 30%. This change would allow new SOL issuance to reach its minimum level sooner. The second proposal, SGP-0003, targets transaction fees and token burns by dividing costs into two components: a fixed fee paid to validators and another fee based on computational resources used, which would be permanently burned.

Estimates suggest that daily SOL burns could increase from 650 tokens to between 7,500 and 9,000 under SGP-0003. Together, the proposals aim to tighten Solana's supply by slowing new token issuance while destroying more existing SOL.