Solana is considering two major tokenomics changes that could substantially reduce growth in the SOL supply, with validators currently voting on proposals designed to accelerate declining issuance while dramatically increasing the amount of tokens burned through network activity. The first proposal, SIMD-0550, would double Solana’s annual disinflation rate from 15% to 30%. The second, SIMD-0553, would introduce resource-based transaction fees that are permanently burned. Both have advanced into Solana’s new formal governance process as SGP-0002 and SGP-0003, respectively. Stake-weighted voting began August 23 and is scheduled to conclude August 27 at approximately 15:30 UTC.
Neither proposal has been implemented yet. If adopted, however, they would simultaneously attack both components of SOL supply growth: SIMD-0550 would reduce how many new tokens the protocol creates, while SIMD-0553 would increase how much existing SOL is destroyed through transaction fees.
SIMD-0550 Could Eliminate 18.9 Million SOL of Issuance
Solana’s current inflation schedule reduces its inflation rate by 15% annually until reaching a long-term floor of 1.5%. As of June, inflation stood at approximately 3.82%. Under the existing schedule, Solana would reach its terminal 1.5% inflation rate in roughly 5.7 years, around the first half of 2032. SIMD-0550 would double the annual disinflation rate to 30%, bringing Solana to 1.5% inflation in approximately 2.8 years, or the first half of 2029. Modeling published alongside the proposal estimates Solana’s total supply after six years would consequently reach approximately 708.54 million SOL instead of 727.43 million under existing policy.
The difference is 18.89 million SOL, equivalent to approximately $1.51 billion using the price assumption employed when the proposal was published. It would leave total supply approximately 2.6% lower than under the existing trajectory. The trade-off would be lower staking rewards. Nominal staking yields are projected to fall from roughly 5.84% currently to approximately 4.34% after one year, 3% after two years and 2.25% after three years. The proposal’s modeling suggests the validator impact would initially remain limited: two of 738 analyzed validators would move from profitable or breakeven to unprofitable in year one, increasing to 13 in year two and 30 in year three.
SIMD-0553 Could Push Daily Burns Toward 9,000 SOL
SIMD-0553 addresses the other side of Solana’s monetary equation. Solana currently burns only about 648 SOL per day through base transaction fees while issuing roughly 60,000 SOL daily, meaning existing burns offset only a small portion of inflation. The proposal would replace the current flat signature-fee model with an inclusion fee paid to the block producer and a separate resource fee based on computational resources requested by each transaction. That resource fee would be burned entirely. The system would roll out progressively. Modeling using May 2026 network activity estimates burns of approximately 1,500–1,800 SOL per day at the first fee level, 3,750–4,500 SOL at the intermediate level and 7,500–9,000 SOL at the proposed terminal rate.
At full deployment, that would represent more than a tenfold increase from current burn levels and could offset roughly 0.5 percentage points of annual inflation under current network conditions. Together, the proposals would fundamentally change SOL’s supply dynamics without making the token immediately deflationary. Faster disinflation would bring protocol issuance toward its 1.5% floor three years earlier, while resource-based fees would make token destruction more directly proportional to network usage. The implications extend beyond supply. Lower issuance means lower staking rewards for holders and potentially tighter economics for smaller validators, while higher transaction burns could increase costs for computationally intensive activity.
Solana has attempted significant inflation reform before. SIMD-0228, which proposed making issuance responsive to staking participation, failed to achieve the required two-thirds supermajority in March 2025. The current proposals take a simpler approach. Rather than dynamically changing inflation according to staking behavior, SIMD-0550 accelerates an inflation decline Solana was already scheduled to make, while SIMD-0553 creates a direct mechanism through which greater blockchain usage destroys more SOL. If validators approve both measures, Solana would move toward a monetary model characterized by substantially slower issuance and materially larger burns — potentially removing billions of dollars of future supply compared with the network’s existing trajectory.