Solana proposes plan to boost token burns 14-fold

Solana’s community is weighing two new proposals that could sharply cut the token’s inflation and accelerate the destruction of SOL, making the blockchain’s native cryptocurrency potentially more attractive to investors. If passed, the changes would nearly quadruple the daily burn rate of SOL tokens and bring forward the date at which the network reaches a permanent 1.5% inflation rate. Both measures are designed to reduce the dilution of existing holders, but history shows protocol upgrades on Solana are not guaranteed to pass.

The first proposal, SIMD-0553, would scrap the current flat-fee model and replace it with a two-part system: validators still earn an inclusion fee, but the resource fee—tied to the compute power a transaction uses—would be burned in full. Today Solana destroys about 648 SOL daily while issuing roughly 60,000 new tokens, so the shift could push daily burns to between 7,500 and 9,000 SOL, roughly a 14-fold increase. Heavy smart-contract interactions would pay the highest fees, aligning burn volume with real network usage and mimicking a stock buyback during periods of high activity.

A second proposal, SIMD-0550, would double the annual disinflation rate from 15% to 30%, pulling the terminal 1.5% inflation date forward to 2029 from 2032 and erasing nearly 19 million SOL in scheduled new issuance. Combined, the two changes would make Solana’s tokenomics more investor-friendly, but both must survive the governance gauntlet. Past community votes have sometimes rejected even seemingly popular upgrades, so passing both proposals is far from certain.

Even if enacted, the burn increase still leaves a net daily issuance of about 51,000 SOL at the top end of the range, so Solana’s long-term inflation problem would not disappear overnight. Still, the shift toward higher burns and faster disinflation would mark a meaningful step toward making the token scarcer and could strengthen the case for SOL as a long-term hold—provided the proposals actually clear the vote.