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SOL A package of governance proposals has significantly increased daily SOL destruction and passed its first official milestone
A governance proposal aimed at significantly increasing daily SOL destruction recently passed its first official milestone, achieving a support threshold of more than 15% in the Solana on-chain governance system. The proposal received support from 65.22 million SOLs from 76 verification nodes, of which Helius and Jupiter were the two largest supporters, providing 16 million and 12.47 million SOLs respectively.
Currently, the proposal is entering the community discussion stage, with a deadline of September 1. After that, a formal interest-weighted vote will be held.
Two proposals to jointly compress supply
This governance proposal bundles two interrelated improvement documents. SIMD-0553 will introduce resource-based transaction fees to increase daily SOL destruction from approximately 650 to as many as 9000; while SIMD-0550 will accelerate the decline in inflation, allowing the network to reach a final inflation rate of 1.5% in 2029 rather than 2032.
SIMD-0553 introduces a two-component pricing structure to replace the existing flat base rate. Under this framework, transactions will incur a fixed inclusive fee (paid to block producers) and a variable resource fee based on computing needs and account data usage. The resource portion will be completely destroyed, while priority fees will continue to flow to the verification node.
On the issue side, SIMD-0550 proposes doubling Solana's annual inflation decline rate from 15% to 30%. Although the network's final inflation target remains anchored at 1.5%, the adjustment would advance the time to reach that target by three years. Based on the proposal, implementing this acceleration plan will reduce the issuance of approximately 18.9 million new coins over six years.
Still in inflation, but the trend is tightening
Even with higher destruction rates, absolute numbers are still well below daily circulation. The number of new SOLs issued daily still far exceeds the estimated destruction volume, which means that the network will continue to experience net inflation in the short term. With daily issuance still close to 60,000 SOLs, the tokens are still inflationary, but if both proposals are passed, net supply growth will slow significantly.
However, over a multi-year span, the cumulative effect of higher destruction quantities could remove millions of SOLs from circulating supplies, especially as trading volumes grow. These changes will slow supply growth, but will not put SOL immediately into deflation. Oversize transactions may cost more, while faster inflation falls will reduce nominal pledge rewards.
Verification nodes and pledgers need to weigh these pros and cons before formally voting. Solana's on-chain governance framework, the SGP system, was launched on July 2, providing verification nodes and committers with the infrastructure to conduct binding, interest-weighted voting on the direction of the agreement for the first time. The destruction proposal is one of the first major tests the system faces.
