Solana Proposals Could Cut Issuance by Up to $1.5B Over Six Years

Solana could see a change in its token economics as two governance proposals target inflation and transaction-related burns. 21Shares says SIMD-550 could accelerate Solana’s path to 1.5% terminal inflation by nearly three years. Meanwhile, SIMD-553 could increase SOL burns if validators adopt its proposed fee structure.

Faster Disinflation, Larger Burns

SIMD-550 would increase annual disinflation from 15% to 30%. Consequently, staking yields could fall toward 4.34% in year one, 3% in year two, and 2.25% in year three. However, lower rewards could encourage capital to move toward decentralized finance and other productive applications.

SIMD-553 could provide a stronger supply-side effect. Current activity burns about 600 to 800 SOL daily. The proposal could lift burns to roughly 7,500 to 9,000 SOL. That would create more SOL demand through network usage.

Investor Im…

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