SGP-0003 combines a fee restructuring with a doubling of the disinflation rate. It requires an additional 40 million SOL in validator backing within two weeks to proceed to a vote.
By Shaurya MalwaUpdated Aug 4, 2026, 5:52 a.m. Published Aug 4, 2026, 5:39 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on A Solana sign (CoinDesk)SummaryShow- Validators on Solana are expressing their backing for two interconnected governance proposals, SIMD-0550 and SIMD-0553, which aim to decrease new SOL issuance while increasing the SOL burned.
- SIMD-0553 would implement resource-based transaction fees, potentially increasing daily SOL burns from about 650 to between 7,500 and 9,000 coins, while SIMD-0550 would hasten disinflation, achieving a 1.5% terminal inflation rate by 2029 instead of 2032.
- The proposals have secured support from 24.94 million SOL in stake, primarily from validator Helius, but require an additional 40 million SOL to meet a 15% signaling threshold before a vote on Aug. 18.
Validators on Solana have begun showing support this week for a governance proposal that aims to modify the flow of SOL in and out of circulation, which could tighten the available supply and influence market valuations.
The proposal known as SIMD-0553 would introduce fees based on resource consumption for transactions, which would raise daily burns from approximately 650 SOL (about $47,000 at current rates) to between 7,500 and 9,000 SOL, translating to around $650,000 daily.
Meanwhile, SIMD-0550 proposes to double the annual disinflation rate to 30%, advancing Solana's 1.5% terminal inflation rate target to 2029 from 2032, effectively eliminating around 18.9 million SOL from circulation over the next six years, valued at approximately $1.36 billion.
SIMD stands for Solana Improvement Document, which is the framework used by core developers for protocol changes, while SGP refers to Solana Governance Proposal, a newer voting system based on stake weight.
Both proposals aim to manage supply by burning existing coins while reducing the issuance of new ones. Currently, Solana's inflation rate is around 3.8%, down from an initial rate of 8% under a schedule that decreases by 15% annually.
Initial support stands at 24.94 million SOL, or 5.8% of the total 432.65 million staked, which is roughly 38% towards the 15% threshold needed for an actual vote. This means that an additional 39.95 million SOL, or about $2.9 billion, must be secured by the signaling deadline on Aug. 18.
So far, 16 validators have indicated their support, representing 2.3% of the total. Helius has contributed 16.03 million SOL, making up nearly two-thirds of the total support, followed by Blueshift at 3.6 million and Temporal Emerald at 1.24 million.
Despite the projected increase in burns, it may not significantly impact the overall SOL issuance. At the upper end of the estimates, 9,000 SOL burned daily would still be against an approximate daily inflation of 60,000 SOL, indicating that the fee adjustment alone won't make SOL deflationary. This is why the proposals are linked, with SIMD-0550 decreasing issuance while SIMD-0553 boosts the burn rate.
Even a 14-fold increase in burns has minimal effect on Solana's issuance. (Shaurya Malwa/CoinDesk)Helius, which provided 16.03 million SOL of the 24.94 million total, employs the engineer responsible for SIMD-0550.
However, the 15% threshold is designed specifically to assess the level of interest among validators. The Solana Foundation established this requirement in July to ensure that only proposals of significant concern would be voted on, while more routine technical matters would remain within the SIMD process.
To pass, additional validators of Helius's scale must recognize the importance of the emissions adjustment, and at the current rate, this has not yet been achieved with two weeks remaining.