Solana validators and delegators are voting on two network proposals that would change how new SOL enters circulation and how more transaction-related fees are removed from supply. The formal votes, SGP-0002 and SGP-0003, map to technical proposals SIMD-0550 and SIMD-0553 and run through epoch 1023, which was expected to end around 15:30 UTC on Aug. 27, though epoch timing can move.

If approved, the measures would not take effect as soon as voting closes. Instead, a successful vote would set governance direction while developers continue implementation, testing, validator coordination and staged activation.

Proposal would speed the path to Solana’s inflation floor

SIMD-0550 would raise Solana’s annual disinflation rate from 15% to 30% while keeping the network’s terminal inflation floor unchanged at 1.5%. The change would not cut the current inflation rate in half immediately. Rather, it would make the yearly decline steeper so the network reaches its existing endpoint sooner.

According to the proposal, Solana could arrive at that 1.5% floor in about 2.8 years, placing it in the first half of 2029 instead of around 2032 under the current schedule. Its authors estimate that, over six years after eventual activation, the network would issue about 18.9 million fewer SOL than it would under the status quo. Using the SOL price cited by 21Shares, that gap equates to roughly $1.4 billion to $1.5 billion, though that dollar figure would vary with SOL’s market price, the activation date and the final rollout schedule.

Lower issuance could reduce staking returns

A faster decline in inflation would also reduce the amount of SOL distributed through staking rewards. Under network assumptions modeled by 21Shares, nominal staking yield would fall from around 5.25% to 4.34% in the first year of the faster schedule, then to 3% in the second year and 2.25% in the third.

That projection is a model rather than a guaranteed outcome, but it highlights the trade-off at the center of the vote: slower token issuance could tighten future supply growth, while also lowering nominal rewards for stakers if the proposal is ultimately implemented.

Second proposal targets a much bigger daily burn

The separate SIMD-0553 proposal focuses on transaction pricing. It would replace Solana’s current 5,000-lamport per-signature base fee with two parts: a 2,500-lamport inclusion fee paid to the block leader and a resource fee that would be burned in full.

That resource fee would depend on the computing capacity and account data requested by each transaction. The rate would rise through three feature gates before reaching one-half lamport per requested cost unit. Temporal, which submitted the design, estimates that if the terminal rate is reached and current activity levels hold, daily SOL burned could rise from about 648 SOL to roughly 7,500 to 9,000 SOL. That implies about a twelvefold to fourteenfold increase, though actual burns could end up lower or higher depending on usage and the final activation path.

Approval would not immediately change SOL supply

Neither proposal becomes active simply because the vote passes. Under the proposed governance rules, each measure needs participation from at least one-third of network stake and support from two-thirds of participating stake, with abstentions excluded.

Even if SGP-0002 or SGP-0003 is approved, the result would authorize continued technical work rather than instant economic changes. SIMD-0550 remains under review in Solana’s improvement-document repository. For SIMD-0553, the technical document was merged into the repository on July 20 after review by the Anza and Firedancer teams, but that merge did not switch on the new fee system. The implementation is expected in version 4.3, followed by testing and staged feature activation.

What the vote decides next

The final vote totals will determine whether Solana’s stakeholders support both changes, only one of them, or neither. Any eventual effect on SOL supply will still depend on later activation dates, validator economics, network demand and, in the issuance case, SOL’s price when the projected dollar impact is assessed.

For now, the confirmed next step is the close of voting at the end of epoch 1023, after which the network should have a clearer signal on whether to move ahead with faster disinflation, a broader burn mechanism, or both.

Source: crypto.news