Solana validators push proposals to boost burns and cut SOL issuance

Solana validators are advancing two governance proposals, SIMD-0550 and SIMD-0553, to reduce new SOL issuance and increase token burns, CoinDesk reported. If approved, the proposals could raise the network’s daily burn from 650 SOL ($47,000) to as much as 9,000 SOL ($650,000), bring forward the date for reaching Solana’s 1.5% inflation target to 2029 from 2032, and cut issuance by about 18.9 million SOL over six years. To be put to a vote, the proposals need backing from 64.89 million SOL, or 15% of the current amount of staked SOL, but they still need support from about 40 million additional SOL. CoinDesk added that some critics argue a deflationary shift would remain difficult even if daily burns rise, as that would still fall short of the 60,000 SOL issued each day.