Solana proposals to double disinflation, burn 9,000 SOL daily

Solana validators are voting on two proposals that would double the network's disinflation rate and lift daily SOL burns to roughly 9,000 tokens.

Solana validators began voting Aug. 3 on proposals to double the network's disinflation rate to 30 percent and lift daily SOL burns to 9,000 tokens.

The measures, filed as SIMD-0550 and SIMD-0553, were flagged by SolanaFloor ahead of the initial vote. SIMD-0550, introduced by Lostin and Ichigo of Helius, would accelerate the path to Solana's 1.5 percent terminal inflation rate, while SIMD-0553 would tie a larger share of transaction fees to a permanent burn.

SOL inflation now sits near 3.8 percent and would take about six years to reach the 1.5 percent terminal rate under the current schedule. Doubling the disinflation rate to 30 percent would compress that timeline to roughly 2.9 years. The burn proposal would lift daily SOL removed from circulation to about 9,000 tokens under high network activity, up from roughly 650 today, according to SolanaFloor. Together the changes would cut about $1.36 billion in projected token issuance over six years.

The proposals face a high approval threshold and pushback from smaller validators, who stand to lose staking yield as issuance falls. Co-founder Anatoly Yakovenko has voiced support. If approved, the faster supply reduction could create deflationary pressure during busy periods and tighten Solana's tokenomics, though the outcome rests on validator votes.

Burn Falls to 700 SOL a Day After SIMD 96

The proposals mark the latest attempt to reshape SOL supply dynamics after SIMD 96, which took effect in February 2025 and redirected 100 percent of priority fees to block producers. That change removed the burn on priority fees, cutting daily SOL burns to roughly 700 tokens from more than 10,000 during peak activity in late 2024 and January 2025, according to Blockworks Research.

SIMD-0553 would restore a meaningful burn by charging a resource-based fee tied to requested cost units, which include compute, data loaded, write locks and heap. The mechanism is designed to scale with network usage and capacity, so more Solana activity would translate into more SOL burned. It is intended to activate after the Alpenglow upgrade, expected by the end of August, which removes validator vote transactions that would otherwise raise costs for smaller validators.

Staking Yield Tradeoff Tests Validator Support

The issuance side has proven harder to change. SIMD 228, a dynamic staking-ratio proposal from Multicoin Capital, failed to pass in March 2025 after validators balked at the direct hit to nominal staking income. SIMD-0550 takes a simpler route, keeping the existing emissions model intact while getting SOL to terminal inflation faster.

The tradeoff is clear: lower nominal staking yields and validator issuance revenue in exchange for a smaller supply burden on tokenholders. Smaller validators have raised concerns about reduced rewards, and the proposals still need to clear a high approval threshold among the validator set.

For SOL holders, the outcome determines whether the token's value capture improves. SOL traded near $72.55 on Aug. 3, down 1.47 percent, as spot demand stayed weak and capital outflows persisted, according to crypto.news. A confirmed break below $71.49 would open a move toward $70, while reclaiming $75.06 would improve the technical setup.

The vote comes as Solana prepares for the Alpenglow upgrade and as ETF inflows into the token have grown. If the proposals pass, the faster disinflation and higher burn would tighten supply during periods of elevated activity, potentially supporting SOL's price. If they fail, the network keeps its current schedule, leaving tokenholder economics dependent on inflationary rewards.

This article is for informational purposes only and does not constitute investment advice.