Solana's $650K Burn Proposal vs. AlphaPepe's $2.2M Presale Hype
Solana's proposed burn mechanism could significantly tighten the network's SOL supply, potentially lifting daily burns from $47K to $650K. This is according to a new proposal, SGP-0003, which would introduce resource-based fees that burn a larger share of network activity.
The proposal also includes a companion change that speeds up the decline in new SOL issuance. While this would tie SOL's scarcity more tightly to real usage, there are several caveats. Firstly, it is not yet live and must gather enough validator support to clear a signaling threshold before reaching a vote later in August.
Even if approved, the boosted burns of up to 9,000 SOL a day would be dwarfed by the roughly 60,000 SOL issued daily, making SOL deflationary only after several years. This is why Solana pairs its burn with the hope of rising usage.