A new Solana proposal aims to ramp up daily SOL Burns from $47,000 to $650,000
SGP-0003 bundles a fee overhaul with a doubling of the disinflation rate. It needs 40 million more SOL of validator support in two weeks to reach a vote.
A new Solana proposal, SIMD-0553, aims to significantly increase daily SOL burns from around $47,000 to a whopping $650,000. The proposal introduces resource-based fees that charge transactions based on the network resources consumed, effectively tightening the circulating supply. If successful, this could lower the annual disinflation rate from 30% to a 2029 target, preventing the emission of approximately 18.9 million SOL over the next six years, valued at roughly $1.36 billion.
This proposal, along with SIMD-0550, which cuts the issuance of new SOL, works together to manage SOL's supply. Currently, the proposal has garnered support from 24.94 million SOL, or 5.8% of the staked SOL. However, it still needs an additional 39.95 million SOL, valued at about $2.9 billion, to reach the necessary 15% threshold.
Helius has contributed 16.03 million SOL alone, accounting for nearly two-thirds of the gathered support. While the burn increase might seem smaller when compared to the daily inflation, the two proposals together aim to balance the issuance and destruction of SOL, potentially impacting its market valuation.
Written by urgent.news from CoinDesk's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
