Solana vote could raise daily SOL burns tenfold
Validators are weighing SGP-0003, a package that would lift daily SOL burns from about 650 to 7,500–9,000 and speed up the token disinflation schedule.
Solana validators are considering SGP-0003, a governance package that would increase the number of SOL tokens burned daily and accelerate the network’s disinflation timetable.
SGP-0003 combines two Solana Improvement Documents. SIMD-0553 would replace flat transaction fees with resource-based fees that allocate a larger share of fee revenue to token burns. Under that fee model, daily burns would rise from about 650 SOL to an estimated 7,500–9,000 SOL per day, depending on network activity. SIMD-0550 would double the annual disinflation rate to 30%, moving the protocol’s 1.5% inflation floor from 2032 to 2029.
Token burns remove SOL from circulation by sending tokens to an unrecoverable address. The two changes target supply dynamics: higher daily burns would remove more tokens each day, while faster disinflation would reduce the planned rate of new token issuance over time. Solana currently issues roughly 60,000 SOL per day.
The proposal is in the support phase of Solana’s on-chain governance process. Validators must signal support for SGP-0003 before it advances to a formal discussion and then a validator vote. As of Tuesday morning, the package had backing from about 63 million SOL, equal to just over 14.4% of the network’s staked supply. The threshold to move the proposal forward is 65.16 million SOL, with an Aug. 18 deadline to reach that level.
The governance dashboard lists 73 supporters so far, including infrastructure and service providers such as Helius, Jupiter, Staking Facilities, Drift, OtterSec and Solana Compass. Some participants in community channels urged validators and node operators to signal support quickly to allow an early vote.
Market context: SOL was trading near $74 with a market capitalization around $43 billion, well below its all-time high near $293. At current prices, burns of about 650 SOL equal roughly $48,000 per day; burns of 7,500–9,000 SOL would equal roughly $550,000–$668,000 per day, depending on token price and network activity. Some prediction-market contracts assign elevated odds that SOL could fall to $40 before recovering to higher levels.
If the support threshold is met, SGP-0003 will enter the discussion phase ahead of a validator vote. If validators approve the proposal in subsequent voting, the changes would be implemented according to the governance timetable set in the final vote.
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