Solana proposal would burn base fees to curb SOL inflation
Pseudonymous developer cavemanloverboy proposed SIMD-547 to add per-transaction base fees on Solana that would be burned, potentially making SOL deflationary and raising daily burn to 64,800 SOL.
On Saturday, June 1, 2026, a pseudonymous developer known as cavemanloverboy introduced Solana Improvement Document 547, or SIMD-547. The proposal would add a base fee to every transaction on Solana and remove those fees from circulation.
SIMD-547 sets different base fees by transaction type. Market makers and users who pay priority fees would see smaller increases, while lower-fee transactions could face higher costs — the proposal’s author estimates some could rise by as much as 600%. The author wrote that fee burning today is “incredibly tiny and insignificant.”
DeFi researcher Zensei calculated that daily SOL burning could rise from about 648 SOL under current rules to between 10,800 and 64,800 SOL if SIMD-547 were adopted and network activity increased roughly 25-fold. The proposal’s author noted that Solana decentralized apps generated about $90 million in revenue in May while only about $1 million in SOL was burned; under the new fee rule the author estimated burn could climb to between $3.6 million and $36 million.
The proposal has drawn both support and opposition inside the Solana community. Solana co-founder Anatoly Yakovenko publicly backed SIMD-547. Other participants cautioned that higher base fees could raise costs for emerging on-chain use cases.
Michael Hubbard, chief executive of SOL Strategies, which holds more than $40 million in SOL, warned the change could make fees too costly for new institutional and artificial intelligence workloads. He added that “agentic activity is increasing” and argued the network must support very high transaction rates to attract larger users, saying, “We need to be able to support 100k+ tps that are a rounding error to users of the network, otherwise we cannot compete with tradfi databases or even other networks.”
SIMD-547 remains at the improvement document stage and would require community discussion and formal adoption before taking effect. Debate in the community focuses on how to balance low transaction costs for developers and large users with tokenomic changes that would increase SOL burning during traffic spikes.
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