Solana Vote May Slash SOL Issuance by $1.4B to $1.5B Over Six Years

Solana is considering two proposals that could significantly reduce SOL issuance and increase transaction-fee burns.

The first proposal, SIMD-0550, would double the annual disinflation rate from 15% to 30%, accelerating Solana's path towards its existing 1.5% terminal floor.

This change is projected to issue approximately 18.9 million fewer SOL over six years than under the current schedule, worth around $1.4 billion to $1.5 billion at current prices.

The second proposal, SIMD-0553, would replace the existing base fee with a new system where a portion of resource fees is burned completely.

Temporal estimates that this change could increase daily SOL burns from about 648 to between 7,500 and 9,000 at current activity, a twelvefold to fourteenfold increase.