- Two of the three Solana governance proposals could materially slow SOL supply growth by accelerating the network’s inflation decline and increasing daily burns from roughly 650 SOL to as much as 9,000 SOL.
- Solana validators began voting Sunday on three proposals, including two that target the network’s circulating supply. Voting is set to close Thursday at around 15:30 UTC.
- Voting power is tied to the amount of SOL staked, giving validators and token holders who delegate their coins to validators a role in deciding the proposals.
- SGP-0002 would change Solana’s inflation schedule. The network currently reduces new SOL issuance by 15% each year, but the proposal would double that reduction to 30%, bringing the protocol to its minimum inflation rate sooner.
- SGP-0003 would change how Solana transaction fees are calculated and distributed. One fixed portion would be paid to the block producer, while another portion linked to the computational demands of a transaction would be burned permanently.
- Based on an earlier CoinDesk estimate, the proposal could increase daily SOL burns from around 650 tokens to between 7,500 and 9,000. At Monday’s market price, that would amount to roughly $61,000-$846,000 worth of SOL removed from circulation each day.
- The combination of reduced issuance and higher burns is attracting attention from SOL holders, although neither proposal directly creates additional demand for the token.
- SGP-0001 is focused on governance rather than supply. It would formally approve the Solana Constitution, establish rules for network decision-making and activate the software used for future votes. Until now, major protocol changes have largely been handled through informal agreement among developers and large network operators.
- The three proposals are being voted on simultaneously, creating an unusual situation in which SGP-0001 would formally establish the voting framework even as SGP-0002 and SGP-0003 are being decided through that same system. The supply-related votes could therefore be completed before the rules governing the voting process are formally ratified.
- SOL was trading above $96 early Monday, gaining 1.6% over 24 hours and roughly 28% over the previous seven days.
Solana Governance Vote Could Burn $800K in SOL Each Day
