Solana Proposals SIMD-0550 SIMD-0553 Target Lower Net Issuance
Solana governance considers SIMD-0550 and SIMD-0553 to accelerate disinflation and raise fee burns, with modeled impact of 18.9 million fewer SOL over six years.
Solana governance votes SGP-0002 and SGP-0003, running through epoch 1023, address two protocol changes that would alter token issuance and burns.
SIMD-0550 would double the annual disinflation rate from 15 percent to 30 percent, moving the 1.5 percent terminal inflation target to early 2029 from around 2032.
SIMD-0553 would introduce additional compute-unit fee burn mechanics, raising daily burns from roughly 600-800 SOL to an estimated 7,500-9,000 SOL depending on network activity.
What remains unknown
21Shares modeling projects these measures together would reduce net SOL issuance by 18.9 million tokens over six years, valued at $1.4-1.5 billion at the prices used in the analysis.
The proposals have not passed and require validator adoption before implementation. Actual burn volumes depend on future network usage, and the dollar valuation of reduced issuance varies with SOL price.