Double Reform to Shift the Balance on the Solana Network: $1.36 Billion Supply Could Be Erased
Two new governance proposals on the Solana network aim to prevent $1.36 billion in emissions within the ecosystem by increasing the daily burn rate approximately 14-fold while reducing new supply production.
Solana validators have begun signaling support for two critical proposals, SIMD-0553 and SIMD-0550, which could radically change the network’s economic structure. This double reform package aims to bring forward the network’s inflation schedule by strengthening the burn mechanism to reduce the circulating SOL supply while slowing the rate at which new supply is introduced to the market. The future supply balance of the Solana brand, as highlighted in the visual, appears dependent on the success of these technical updates.
The SIMD-0553 proposal introduces a resource-based model where transactions are priced according to the network resources they consume. If this change is implemented, the daily burn amount, which is currently around 650 SOL, could rise to between 7,500 and 9,000 SOL. At current prices, this means the daily burn value would increase from approximately $47,000 to $650,000.
Potential for $1.36 Billion Cut in Solana Supply
The other significant proposal, SIMD-0550, aims to increase the annual disinflation rate from 15% to 30%. This move would allow Solana to reach its terminal inflation target of 1.5% by 2029 instead of 2032. Experts state that if these two proposals are accepted together, the emission of 18.9 million SOL will be prevented within six years, creating a supply contraction worth approximately $1.36 billion.
According to current data, 38% of the 15% threshold required to put the proposals to a vote has been completed. In a process supported by a total of 24.94 million SOL, Helius holds the largest share with 16.03 million SOL. However, considering that 60,000 SOL in new supply is produced daily, the approval of both proposals is critical for the burn increase to have a deflationary effect on the SOL price. The signaling process will conclude on August 18.