🚨 Solana may be heading toward large-scale deflation!
In the next 6 years, 18.9 million fewer SOL will be issued—will $1.5 billion in supply disappear?
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Solana recently has two major proposals under governance voting, and this time the impact isn’t just on network parameters—it’s on the future SOL supply structure. 👀 If the proposals are ultimately approved, the rate of new SOL issuance in the coming years could slow down significantly, while the amount of network transaction fees burned could increase sharply.
The first key proposal is SIMD-0550.
Currently, Solana’s inflation rate gradually declines, and the new plan aims to accelerate that decline by doubling it—raising the deflation speed from the original 15% to 30%. This doesn’t mean that SOL will stop being issued immediately; instead, it would help Solana reach the final long-term inflation level of 1.5% faster.
According to related models, if the proposal is implemented, over the next 6 years Solana could release about 18.9 million fewer SOL than the original issuance schedule. Based on today’s prices, the scale would be close to $1.4–$1.5 billion. 📉 If network demand keeps growing but new supply starts shrinking, the supply-demand structure of SOL could change. However, there’s also an important trade-off here.
Reducing issuance also means staking rewards may decline. According to 21Shares’ model, in the coming years the nominal staking yield for SOL could fall from roughly 5% currently, gradually down to 4%, 3%, and even near 2%. ⚠️ For long-term holders, less new coin supply could be beneficial in reducing sell pressure.
But for validators and institutions that rely on staking yield, the drop in rewards could directly affect revenue. The second proposal, which is even more worth watching, is SIMD-0553.
This plan targets Solana’s transaction fees. In the future, some resource costs may no longer be paid to validators and would instead be directly burned. Based on current network activity levels, the number of SOL burned per day could rise from about 648 to 7,500–9,000. In theory, that’s more than a 10x increase. 🔥
Of course, none of this has truly happened yet.
Even if the governance vote passes, it doesn’t mean the new mechanism will be live immediately.
There will still be code development, testing, validator coordination, and phased deployment ahead.
Click the avatar to watch the livestream + join the Jiuji chat group to get daily strategies 🚀
#sol #solana
In the next 6 years, 18.9 million fewer SOL will be issued—will $1.5 billion in supply disappear?
Group: 点击加入玖玖的粉丝群
Solana recently has two major proposals under governance voting, and this time the impact isn’t just on network parameters—it’s on the future SOL supply structure. 👀 If the proposals are ultimately approved, the rate of new SOL issuance in the coming years could slow down significantly, while the amount of network transaction fees burned could increase sharply.
The first key proposal is SIMD-0550.
Currently, Solana’s inflation rate gradually declines, and the new plan aims to accelerate that decline by doubling it—raising the deflation speed from the original 15% to 30%. This doesn’t mean that SOL will stop being issued immediately; instead, it would help Solana reach the final long-term inflation level of 1.5% faster.
According to related models, if the proposal is implemented, over the next 6 years Solana could release about 18.9 million fewer SOL than the original issuance schedule. Based on today’s prices, the scale would be close to $1.4–$1.5 billion. 📉 If network demand keeps growing but new supply starts shrinking, the supply-demand structure of SOL could change. However, there’s also an important trade-off here.
Reducing issuance also means staking rewards may decline. According to 21Shares’ model, in the coming years the nominal staking yield for SOL could fall from roughly 5% currently, gradually down to 4%, 3%, and even near 2%. ⚠️ For long-term holders, less new coin supply could be beneficial in reducing sell pressure.
But for validators and institutions that rely on staking yield, the drop in rewards could directly affect revenue. The second proposal, which is even more worth watching, is SIMD-0553.
This plan targets Solana’s transaction fees. In the future, some resource costs may no longer be paid to validators and would instead be directly burned. Based on current network activity levels, the number of SOL burned per day could rise from about 648 to 7,500–9,000. In theory, that’s more than a 10x increase. 🔥
Of course, none of this has truly happened yet.
Even if the governance vote passes, it doesn’t mean the new mechanism will be live immediately.
There will still be code development, testing, validator coordination, and phased deployment ahead.
Click the avatar to watch the livestream + join the Jiuji chat group to get daily strategies 🚀
#sol #solana
