Solana Wants to Burn 10x More SOL Daily — Even Its Inflation Is Getting a Trim 🚀

Solana validators are weighing a governance package that would dramatically expand the network's daily token burns while accelerating the pace at which new SOL issuance tapers off. The proposal, SGP-0003, bundles two prior Solana Improvement Documents into a single framework aimed at tightening the supply of SOL.

SIMD-0553 would introduce resource-based transaction fees, lifting daily SOL burns from roughly 650 SOL (about $48,000) to between 7,500 and 9,000 SOL (up to roughly $668,000), depending on network activity. SIMD-0550 would double Solana's annual disinflation rate to 30%, pulling the network's 1.5% inflation floor forward from 2032 to 2029. By sending tokens to an unusable wallet address, burns permanently remove SOL from circulation. Combining higher burns with reduced issuance is intended to slow the growth of SOL's circulating supply.

The package sits in Solana's support phase and must clear a validator-backed threshold. As of Tuesday morning, it had drawn support from 63 million SOL, just over 14.4% of the network's staked supply, leaving roughly 3 million SOL to reach the required 65.16 million SOL before the Aug. 18 deadline. According to the Solana Validator Governance dashboard, the proposal has 73 supporters, including Helius, Jupiter, Staking Facilities, Drift, OtterSec, and Solana Compass. Validator Juicehead posted on X that the deflation and burning proposals will go to an early vote starting tomorrow if they cross at least 15% of stake to signal support, followed by a final vote thereafter.

The higher burn rate alone would not render SOL deflationary. Solana currently issues about 60,000 SOL per day, and the companion issuance proposal is meant to curb new supply while the fee changes increase the amount permanently removed. If the proposal reaches the required support threshold, it will advance to the discussion phase before a formal validator vote.

SOL, the native token of the Solana network, is changing hands for around $74 at a $43 billion market capitalization, up slightly on the day but well below its all-time high of $293 reached over a year ago. On Myriad, a prediction market developed by Decrypt's parent company Dastan, traders are placing 70% odds that SOL drops to $40 before recovering to $160.