New Solana Proposal Could Push Daily SOL Burns Toward $800,000

Two of the three Solana proposals could reduce SOL’s supply growth by accelerating the network’s inflation decline and increasing daily token burns from around 650 SOL to as much as 9,000 SOL.
Solana validators started voting Sunday on three proposals, with two focused on reducing the amount of SOL circulating. The voting period is scheduled to end Thursday at approximately 15:30 UTC.
Voting power is determined by the amount of SOL staked, meaning tokens committed to supporting the network. This gives influence to validators operating Solana’s infrastructure as well as regular holders who delegate their tokens to validators.
Two proposals specifically target SOL’s supply mechanics. SGP-0002 would accelerate the reduction in newly issued SOL. Solana currently lowers its annual issuance rate by 15%, but the proposal would increase that reduction to 30%, allowing the network to reach its minimum inflation rate sooner.
SGP-0003 focuses on transaction fees and how they are distributed. Under the proposal, fees would be divided into two components: one fixed portion would go to the block producer, while another portion based on the computational resources required by the transaction would be permanently burned.
CoinDesk reported earlier this month that the change could lift Solana’s daily SOL burns from roughly 650 tokens to between 7,500 and 9,000. At Monday’s prices, that would represent approximately $61,000 to $846,000 worth of SOL burned each day.
The combination of slower new issuance and larger token burns is drawing attention from SOL holders, although neither proposal directly addresses demand for the cryptocurrency.
The third proposal, SGP-0001, does not alter SOL’s supply. Instead, it would formally approve a document known as the Solana Constitution, outlining the network’s governance process and activating the software used to conduct future votes. Until now, Solana changes have generally been coordinated informally among developers and major network operators.
All three proposals are being considered at the same time, creating an unusual governance situation. SGP-0001 would formally establish the voting framework, yet the two supply-related proposals are already being decided through that framework. Their results could therefore be finalized before the rules governing the voting process itself are formally approved.
SOL was trading above $96 early Monday, gaining 1.6% over 24 hours and roughly 28% over the previous week.