Solana Validators Back Proposals to Increase Daily SOL Burns 14-Fold to $650,000

Solana validators are evaluating governance proposals SIMD-0553 and SIMD-0550, bundled as SGP-0003, to overhaul the network's monetary policy. The reforms would introduce resource-based fees to increase daily SOL burns 14-fold to $650,000, while doubling the disinflation rate to 30% to reach a 1.5% terminal inflation floor by 2029. To advance to a formal vote, the initiative requires 40 million SOL in additional validator backing by August 18, 2026, to clear the 15% signaling threshold.

SIMD-0553 resource fee restructuring

• ▪The SIMD-0553 proposal introduces resource-based transaction fees that charge transactions based on the computational power, account data, and network resources they consume.
• ▪Under SIMD-0553, the existing flat base fee of 5,000 lamports is split into a fixed 2,500-lamport inclusion fee for block leaders and a variable resource fee that is burned in full.
• ▪The SIMD-0553 proposal is projected to increase daily SOL burns from approximately 650 SOL (worth $47,000) to up to 9,000 SOL (worth $650,000) at current network activity levels.

SIMD-0550 accelerated disinflation schedule

• ▪SIMD-0550 would pull the timeline for reaching Solana's 1.5% terminal inflation floor forward from 2032 to 2029, compressing the transition from 5.7 years to approximately 2.8 years.
• ▪Implementing the SIMD-0550 disinflation schedule is estimated to eliminate approximately 18.9 million SOL in future emissions over a six-year period.
• ▪The SIMD-0550 proposal doubles Solana's annual disinflation rate from 15% to 30% while keeping the starting inflation rate and the 1.5% terminal floor rate unchanged.

Combined supply reduction impact

• ▪Even at the maximum projected burn rate of 9,000 SOL per day under SIMD-0553, daily issuance of approximately 60,000 SOL would maintain net-positive supply growth for the Solana network.
• ▪The combined effect of SIMD-0553 and SIMD-0550 would reduce circulating supply on the demand side via higher burns while slowing the rate of new token issuance on the supply side.

Solana governance approval process

• ▪Solana validators must commit the remaining required support by an August 18, 2026 deadline for the proposal to clear the signaling threshold.
• ▪The governance proposal, bundled as SGP-0003, requires backing from 15% of the staked supply—representing an additional 40 million SOL—to advance to a formal vote.
• ▪Initial support for the proposal stands at 24.94 million SOL from 16 validators, heavily led by infrastructure company Helius with 16.03 million SOL of the running total.