Solana validators and delegators are voting on two economic proposals that could accelerate SOL disinflation and sharply increase transaction-fee burns.
Summary
- SIMD-0550 would double Solana’s annual disinflation rate while preserving the network’s 1.5% terminal floor unchanged.
- The proposal projects 18.9 million fewer SOL issued across six years after eventual technical activation.
- SIMD-0553 would burn resource fees, potentially increasing daily destruction toward 7,500–9,000 SOL at present activity.
- Nominal staking yield could decline toward 2.25% by year three under 21Shares’ modeled network assumptions.
- Governance approval would establish direction, but neither economic change becomes active immediately following the vote.
The formal votes cover SGP-0002 and SGP-0003, which correspond to technical proposals SIMD-0550 and SIMD-0553. Voting runs through epoch 1023, expected to end around 15:30 UTC on Aug. 27, although epoch timing can shift.
Solana disinflation could reach its floor by 2029
SIMD-0550 would double Solana’s annual disinflation rate from 15% to 30%. The proposal would not immediately halve the current inflation rate.
Instead, it would accelerate the annual decline toward Solana’s existing 1.5% terminal rate. The proposal estimates the network would reach that floor in approximately 2.8 years, during the first half of 2029, rather than around 2032.
Its authors project that Solana would issue approximately 18.9 million fewer SOL over six years than under the current schedule. Based on the SOL price used by 21Shares, the difference would be worth approximately $1.4 billion to $1.5 billion.
The dollar estimate is not a guaranteed reduction in value. It changes with SOL’s price, activation timing and the final implementation schedule.
SIMD-0550 remains under review in Solana’s improvement-document repository. Even a successful SGP-0002 vote would provide a governance mandate rather than immediately activate the new inflation curve.
Lower issuance would reduce staking rewards
21Shares estimates that nominal staking yield could fall from around 5.25% to 4.34% in the first year, 3% in the second and 2.25% in the third under the faster schedule.
Those estimates include more than protocol inflation. Validator and delegator returns can also include transaction fees, priority tips and maximal extractable value. Changes in network usage could therefore cause actual yields to differ from the projection.
The lower reward path has divided institutional participants. Solana Company, a Nasdaq-listed SOL treasury operator, voted against both economic proposals, arguing that changing core parameters could make institutional revenue and cost forecasting harder.
As crypto.news reported, staking produced nearly all Solana Company’s quarterly revenue. The company earned $2.512 million from staking during the second quarter, making lower issuance directly relevant to its business.
SIMD-0553 could increase daily SOL burns
SIMD-0553 would replace the existing 5,000-lamport per-signature base fee with two components. A 2,500-lamport inclusion fee would go to the block leader, while a resource fee would be burned completely.
The resource fee would depend on the computing capacity and account data requested by each transaction. Its rate would increase through three feature gates before reaching one-half lamport per requested cost unit.
Temporal, which submitted the design, estimates that the terminal rate could increase daily burns from about 648 SOL to between 7,500 and 9,000 SOL at current activity. That would represent a roughly twelvefold to fourteenfold increase.
The burn estimate assumes current transaction activity continues and the final fee rate becomes active. Actual burns may be lower or higher.
The technical document was merged into the repository on July 20 after review by Anza and Firedancer teams. However, merging the document did not activate the fee system. Implementation is expected in version 4.3, followed by testing and staged feature activation.
Solana vote will not immediately change supply
The proposals need participation from at least one-third of network stake and support from two-thirds of participating stake, excluding abstentions, under the proposed governance rules.
As previously reported, Solana’s earlier 80% inflation-reduction proposal failed despite receiving 61.39% support. It fell below the required 66.67% threshold.
Approval of SGP-0002 and SGP-0003 would authorize continued technical work. Developers would still need to finish code, testing, validator coordination and feature-gate scheduling.
Final vote totals will show whether Solana supports both changes, only one proposal or neither. The eventual supply effect will depend on activation dates, SOL prices, validator economics and future network demand.
