Solana's 10x burn proposal just cleared its first hurdle

A governance package that would dramatically increase the amount of $SOL burned each day has cleared its first formal milestone, crossing the 15% support threshold required to advance on Solana's on-chain governance system. The proposal drew backing from 65.22 million SOL across 76 validators, with Helius and Jupiter the two largest supporters at 16 million and 12.47 million SOL respectively.

The package now enters a community discussion phase running until September 1, after which a formal stake-weighted vote will take place.

Two Proposals, One Supply Squeeze

The governance package bundles two linked improvement documents. SIMD-0553 would introduce resource-based transaction fees, lifting daily SOL burns from about 650 to as many as 9,000 coins, while SIMD-0550 would accelerate disinflation so the network reaches its 1.5% terminal inflation rate by 2029 instead of 2032.

SIMD-0553 introduces a dual-component pricing structure to replace the existing flat-rate base fee. Under this framework, transactions would incur a fixed inclusion charge paid to block producers, plus a variable resource fee based on computational requirements and account data usage. The resource component would be fully burned, while priority fees would continue flowing to validators.

On the issuance side, SIMD-0550 proposes doubling Solana's yearly disinflation rate from 15% to 30%. While the network's ultimate inflation target remains anchored at 1.5%, this adjustment would advance the timeline for reaching that floor by three years. According to proposal calculations, implementing this accelerated schedule would reduce new token issuance by approximately 18.9 million SOL across a six-year period.

Still Inflationary, But Trending Tighter

Even at the higher burn rate, the absolute numbers remain far below daily issuance. New SOL issued each day still dwarfs the projected burns, meaning the network would continue to experience net inflation in the near term. With issuance still running near 60,000 SOL daily, the token stays inflationary for now, but net supply growth would slow considerably if both proposals pass.

Over a multi-year horizon, however, the cumulative effect of higher burns could remove millions of SOL from circulating supply, especially if transaction volume grows.

The changes would slow supply growth but would not make SOL immediately deflationary. Oversized transactions could cost more, while faster disinflation would reduce nominal staking rewards. Validators and stakers will need to weigh those trade-offs ahead of the formal vote.

Solana's on-chain governance framework, the SGP system, went live on July 2, giving validators and delegators the infrastructure to run binding, stake-weighted votes on protocol direction for the first time. This burn package is among the first major tests of that system.

Sources:
CoinDesk: A new Solana proposal would take daily SOL burns from $47,000 to $650,000
Crypto Times: Solana Seeks 14x Burn Increase Alongside Accelerated Supply Reduction
Coindoo: Solana Weighs Two Proposals to Slow SOL Supply Growth