Solana Proposals Could #Sharply Increase SOL Burns and Cut Issuance by $1.4B-$1.5B Over Six Years$SOL 🚨
According to 21Shares, Solana is advancing two governance proposals, SIMD-550 and SIMD-553. SIMD-550 would double the annual disinflation rate from -15% to -30%, moving Solana’s path to its 1.5% terminal inflation rate from around 2032 to H1 2029, while nominal staking yield is projected to fall to about 2.25% by year three.
SIMD-553, approved and merged on July 20, introduces a burn fee on requested compute units from financial activity. Based on current network activity, daily SOL burns could rise from about 600-800 SOL to roughly 7,500-9,000 SOL. Together, the two proposals are projected to reduce issuance by about $1.4B-$1.5B over six years. The final impact still depends on the SIMD-550 vote and SIMD-553 validator fee design.
According to 21Shares, Solana is advancing two governance proposals, SIMD-550 and SIMD-553. SIMD-550 would double the annual disinflation rate from -15% to -30%, moving Solana’s path to its 1.5% terminal inflation rate from around 2032 to H1 2029, while nominal staking yield is projected to fall to about 2.25% by year three.
SIMD-553, approved and merged on July 20, introduces a burn fee on requested compute units from financial activity. Based on current network activity, daily SOL burns could rise from about 600-800 SOL to roughly 7,500-9,000 SOL. Together, the two proposals are projected to reduce issuance by about $1.4B-$1.5B over six years. The final impact still depends on the SIMD-550 vote and SIMD-553 validator fee design.
