Solana’s developer community is advancing two interconnected governance proposals that could reshape the network’s monetary policy. Documented in the official Solana Improvement Documents repository on GitHub, the measures would dramatically increase the amount of SOL permanently removed from circulation each day while speeding up the decline in new token issuance. Together, SIMD-0553 and SIMD-0550 represent one of the most significant attempts to tighten Solana’s supply dynamics in recent years.
The first proposal, SIMD-0553, focuses on restructuring transaction fees so that a larger share of economic activity on the network translates into token burns. The second, SIMD-0550, doubles the rate at which Solana’s inflation schedule declines.
Proponents argue the changes will better align SOL’s economics with rising network usage, while the proposals themselves note that even the boosted burn figures remain modest compared with daily issuance under current conditions.
Resource Fees Set to Drive Sharp Rise in Daily SOL Burns
Under the current system, Solana charges a flat base fee of 5,000 lamports per signature. Roughly half of that fee is burned, producing only about 648 SOL destroyed per day. That figure is tiny relative to the roughly 60,000 SOL newly issued each day through the network’s inflation schedule, which currently runs near 3.8% annually.
SIMD-0553, authored by researcher cavemanloverboy and formally submitted as a pull request in the solana-foundation/solana-improvement-documents repository, splits the existing base fee into two parts.
A fixed 2,500-lamport inclusion fee continues to go to the block leader. A new resource fee, calculated from the compute units and other costs a transaction requests, is burned in full. The resource fee rate is designed to ramp up through feature gates, eventually reaching a terminal rate of 0.5 lamports per cost unit.
According to the proposal document, at current network activity levels the change would lift daily burns to between 7,500 and 9,000 SOL. The design aims to end the long-standing situation in which compute has effectively been free at the margin. Transactions that request far more resources than they consume will face higher costs, creating an incentive for more accurate resource declarations and reducing inefficient scheduling.
Low-resource activity such as simple votes and oracle updates is expected to become slightly cheaper under the new structure, while compute-heavy transactions pay more. Priority fees remain untouched and continue to flow to leaders. The proposal has received technical review and was merged into the main repository after approval by core client teams, with implementation targeted for a forthcoming validator release.
Even at the higher burn rate, the absolute numbers remain far below daily issuance. The proposal documentation and accompanying analysis illustrate the disparity clearly: new SOL issued each day still dwarfs the projected burns, meaning the network would continue to experience net inflation in the near term. Over a multi-year horizon, however, the cumulative effect of higher burns could remove millions of SOL from the circulating supply, especially if transaction volume grows.
Solana continuously burns 50% of all base transaction fees (and previously also priority fees before SIMD-96 in February 2025). As of mid-2026, these ongoing fee burns average roughly 650–700 SOL per day—as per Blockworks data.
Doubled Disinflation Rate Aims to Reach Terminal Inflation Years Earlier
Running in parallel is SIMD-0550, submitted by Helius engineers Lostin and 0xIchigo as a formal pull request in the same GitHub repository. This proposal leaves the starting inflation rate and the long-term terminal rate of 1.5% unchanged but doubles the annual disinflation rate from 15% to 30%. The practical result is a much steeper decline curve.
Under the existing schedule, Solana is projected to reach its 1.5% terminal inflation rate in roughly 5.7 years. SIMD-0550 would compress that timeline to about 2.8 years. Modeling included in the proposal estimates the change would eliminate approximately 18.9 million SOL in future emissions over a six-year window.
The design is intentionally simple: a single feature gate activates the higher taper rate. This simplicity is deliberate. Earlier, more complex attempts to overhaul emissions failed to secure the required support. By focusing on a straightforward parameter change, SIMD-0550 seeks broader consensus while still delivering meaningful supply reduction.
When the two proposals are considered together, the combined impact becomes more pronounced. Higher daily burns from SIMD-0553 reduce the circulating supply on the demand side of network activity, while accelerated disinflation from SIMD-0550 slows the rate of new issuance.
Analyses linked to the proposals suggest that under sustained high usage, net supply growth could fall below the 1.5% terminal target in later years, creating periods of milder inflationary pressure.
Both proposals have advanced through technical review within the official Solana Improvement Documents process on GitHub. Core client teams have issued concept acknowledgments, and key elements of the fee restructuring have already been merged.
With Solana’s on-chain governance system now operational, the measures are positioned for formal stake-weighted votes by validators and delegators. Discussion continues across developer forums and the repository itself, reflecting the high stakes for long-term token economics.
The proposals do not eliminate inflation overnight. Daily issuance would still exceed burns under current conditions, and staking yields would continue to decline as the inflation schedule compresses. Supporters view the changes as essential steps toward making SOL a stronger store of value that better captures the economic activity occurring on the network.
As Solana continues to process high volumes of transactions, the ability to convert that activity into meaningful token destruction and faster progress toward a lower inflation floor is presented in the documents as a critical evolution of the protocol’s design.
If approved and activated, the reforms would mark a clear shift in how Solana manages its monetary policy—tying burns more tightly to real resource consumption and accelerating the path to a more predictable long-term supply.
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