Solana starts phased 90% storage cost cut for token accounts

Solana’s core development team, Anza, announced that the first of a total of five feature gates has gone live. The development will result in a 90% reduction in on-chain storage costs. The changes will be beneficial mainly for stablecoin and payment businesses, which have become one of the network’s fastest-growing use cases.

For developers forming token accounts in large quantities and the users they onboard, this change now brings a lower fixed capital cost, which had remained the same for years.

The timing is very important. Over the past year, Solana has been working to make itself known as a settlement rail and not only a means of speculation. However, rent remains one of the obstacles that are standing on their way of achieving the defined goal of mass account creation. Cheaper accounts make it more feasible for fintech companies and wallets to pay for the deposits of their users.

Solana begins phased cut to token account costs

SIMD-0437, a proposal written by Igor Durovic from Anza, is in charge of the reform. It lowers a constant called lamports_per_byte, which establishes the minimum balance an account has to maintain from 6,960 to 696.

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