Solana Vote Seeks to Slash Token Supply Growth, Accelerate Fee Burns

Solana validators are voting on two governance proposals that could reshape the network's supply dynamics for years to come. If approved, the changes would cut new SOL issuance by an estimated $1.4 billion to $1.5 billion over six years.

The proposals, SGP-0002 and SGP-0003, correspond to technical documents SIMD-0550 and SIMD-0553. Voting is ongoing through epoch 1023, expected to conclude on August 27.

SIMD-0550 would double Solana's annual disinflation rate from 15% to 30%, accelerating the timeline to the network's 1.5% terminal inflation rate by approximately two years. This change is estimated to reduce SOL issuance by around 18.9 million tokens over six years.

The faster disinflation path carries a direct cost for stakers, with nominal staking yield projected to fall from about 5.25% in year one to 2.25% in year three under 21Shares' modeling.