Solana Governance Changes Could Slash SOL Issuance by $1.5B Over Six Years

Two Solana governance proposals could cut the amount of new SOL entering circulation by an estimated $1.4 billion to $1.5 billion over six years while substantially increasing token burns, according to 21Shares.

Specifically, SIMD-550 proposes doubling Solana’s annual disinflation rate to 30% from 15%, which would bring the network to its 1.5% terminal inflation rate in the first half of 2029 instead of around 2032. Under the proposal, nominal staking returns would fall to roughly 2.25% in the third year.

A separate proposal, SIMD-553, was approved and merged on July 20 and would burn fees tied to the compute units requested by financial transactions. At current levels of network activity, 21Shares estimates the change could lift daily SOL burns to roughly 7,500-9,000 tokens from about 600-800.

The projected impact remains subject to the outcome of the SIMD-550 vote and the validator fee design for SIMD-553.

Source: 21Shares