Solana validators and delegators are casting votes on two high-impact economic proposals that could dramatically speed up token disinflation and crank up transaction-fee burns — together potentially shaving roughly $1.4–$1.5 billion worth of future SOL issuance over six years. What’s on the ballot - SGP-0002 (technical proposal SIMD-0550): doubles Solana’s annual disinflation rate from 15% to 30%, accelerating the protocol’s path toward a 1.5% terminal inflation rate. Instead of reaching that floor around 2032, the new curve would hit it in roughly 2.8 years — early 2029. - SGP-0003 (technical proposal SIMD-0553): revamps the base fee model, splitting the current 5,000-lamport-per-signature into two parts — a 2,500-lamport inclusion fee paid to block leaders and a resource fee (based on compute and account data usage) that would be burned. Timing and voting mechanics - Voting runs through epoch 1023, currently expected to end around 15:30 UTC on Aug. 27 (epoch timing can shift). - For a proposal to pass under the proposed governance rules it needs participation from at least one-third of network stake, plus two-thirds approval among participating stake (abstentions excluded). Economic effects and estimates - SIMD-0550’s faster disinflation path is estimated to reduce SOL issuance by roughly 18.9 million tokens over six years. Using the SOL price cited by 21Shares, that translates to about $1.4–$1.5 billion in nominal issuance not happening — though the dollar figure will vary with SOL price, activation timing and final implementation details. - 21Shares projects nominal staking yields could decline under the faster schedule: from ~5.25% now to about 4.34% in year one, ~3% in year two and ~2.25% in year three. Those projections exclude variable income sources such as transaction fees, priority tips and MEV, so real yields could differ if network activity changes. - SIMD-0553’s resource-fee burn could dramatically increase daily burns. Temporal’s design estimates terminal daily burns could jump from roughly 648 SOL today to between 7,500 and 9,000 SOL if current activity levels persist and the final fee rate is enacted — roughly a 12x–14x increase. That estimate assumes staged feature gates reach the terminal rate (one-half lamport per requested cost unit) and doesn’t guarantee outcomes. Process and implementation - Both SIMD technical documents have been through review; SIMD-0553 was merged into the improvement repository on July 20 after reviews by Anza and Firedancer teams. But merging a document doesn’t activate new economics — approval of SGP-0002/SGP-0003 would only give a governance mandate to continue technical work. - Implementation is expected to arrive in Solana v4.3, followed by testing and staged feature activation. Developers, validators and node operators will still need to finalize code, testing, coordination and feature-gate scheduling before any changes go live. Stakeholder reaction - Institutional stakeholders are split. Solana Company — a Nasdaq-listed SOL treasury operator — voted against both proposals, warning that changing core monetary parameters complicates institutional revenue and cost forecasting. Staking accounted for nearly all of its quarterly revenue (about $2.512 million in Q2), making reduced issuance directly relevant to its business model. - The community’s appetite for large inflation changes is mixed: an earlier proposal to cut inflation by 80% received 61.39% support but failed because it didn’t clear the 66.67% approval threshold. Bottom line If both proposals win the required support, they would greenlight continued engineering work that could materially tighten Solana’s supply dynamics and markedly increase fee burns — but the ultimate impact on supply, staking returns and price will hinge on activation dates, SOL’s market price, validator economics and future network demand. Final vote totals will reveal whether the network prefers both changes, just one, or neither. Read more AI-generated news on: undefined/news