Solana Voting Begins: Inflation Decline Could Accelerate, Transaction Fees Could Be Fully Burned

Solana validators have begun voting on three proposals that could alter the network’s supply and fee rules; the long-term impact on SOL will depend on the outcome of the vote.

Validators who operate the Solana network and confirm transactions are participating in a vote for a new constitution, a faster reduction in SOL production, and a restructuring of transaction fees. According to reports from Wu Blockchain, the process will continue until the end of epoch 1023, a specific period on the network. The voting is expected to conclude around Thursday at 15:30 UTC. The proposals have not yet been finalized.

The first proposal, SGP-0001, envisions the creation of a Solana Constitution. SGP-0002 proposes increasing the disinflation rate from 15% to 30%. Disinflation determines how quickly the annual inflation rate will decrease over time. Increasing this rate means that SOL production will decrease more rapidly compared to the current plan.

Solana’s supply and fee model could change

The most direct economic change is found in the SGP-0003 proposal. This regulation aims to split transaction fees into two parts. The first part will be the base inclusion fee, the fundamental fee charged for adding a transaction to a block. The second part is defined as the resource fee, arising from the use of the network’s computing resources. According to the proposal, 100% of this resource fee will be burned. Burning refers to the removal of SOL collected as fees from circulation.

If the proposals are accepted, the increase in SOL supply could slow down more quickly, and SOL obtained from resource fees could be removed from circulation. This situation could change Solana’s supply dynamics and fee economy. However, it will not be certain whether the changes will be finalized and take effect until the validator voting is complete.