Solana proposals could cut $1.5B in SOL issuance

Solana validators and delegators are voting on two economic proposals that could accelerate SOL disinflation and sharply increase transaction-fee burns. Summary SIMD-0550 would double Solana’s annual disinflation rate while preserving the network’s 1.5% terminal floor unchanged. The proposal projects 18.9 million fewer SOL issued across six years after eventual technical activation. SIMD-0553 would burn resource fees, potentially increasing daily destruction toward 7,500–9,000 SOL at present activity. Nominal staking yield could decline toward 2.25% by year three under 21Shares’ modeled network assumptions. Governance approval would establish direction, but neither economic change becomes active immediately following the vote. The formal votes cover SGP-0002 and SGP-0003, which correspond to technical proposals SIMD-0550 and SIMD-0553. Voting runs through epoch 1023, expected to end around 15:30 UTC on Aug. 27, although epoch timing can shift. Solana disinflation could reach its floor by 2029 SIMD-0550 would double Solana’s annual disinflation rate from 15% to 30%. The proposal would not immediately halve the current inflation rate. Instead, it would accelerate the annual decline t...