Key facts
- Solana validators are signaling support for proposals SIMD-0550 and SIMD-0553.
- The proposals aim to reduce SOL issuance and increase daily SOL burns.
- SIMD-0553 could raise daily SOL burns from approximately 650 SOL to 9,000 SOL.
- This represents a fourteenfold increase in daily SOL burns.
- SIMD-0550 accelerates the network's disinflation schedule.
Solana validators are currently evaluating two key proposals, SIMD-0550 and SIMD-0553, which are designed to significantly modify the network's tokenomics by reducing SOL issuance and increasing the rate at which SOL tokens are burned. The primary objective of these proposals is to make the Solana network more disinflationary.
SIMD-0553 specifically targets an increase in daily SOL burns. Under the current system, approximately 650 SOL tokens are burned each day. This proposal has the potential to raise that figure to as much as 9,000 SOL per day, representing a fourteenfold increase in the burn rate. Concurrently, SIMD-0550 aims to accelerate the network's disinflation schedule. This means that the rate at which new SOL tokens are created would decrease more rapidly than under the current plan, contributing to a tighter overall supply.