The Solana ecosystem is once again heating up on adjustments to the SOL token economy. The latest proposal, SIMD-0550, plans to increase the deinflation rate of SOL from 15% to 30%, allowing the network to reach a terminal issuance rate of 1.5% sooner.
SIMD-0550 has entered public discussion.
This proposal, spearheaded by Helius engineer lostin, is considered a follow-up to SIMD-0411, which was proposed last November. The new version adds a more explicit implementation method and updates the calculation data.
According to the proposal, if the governance process is approved, the issuance rate of SOL will drop to an annualized terminal level of 1.5% within approximately 2.8 years, almost 3 years ahead of the original schedule. Based on current prices, this could reduce token issuance by approximately $1.5 billion.
Solana Labs co-founder Anatoly Yakovenko and other ecosystem members have publicly expressed their support. Supporters believe that the current high issuance rate of SOL is continuously diluting the circulating supply and suppressing the token's performance.
The ecosystem also discussed a fee burning scheme.
In addition to SIMD-0550, the Solana ecosystem has also recently been discussing another proposal related to token supply, SIMD-0547. This proposal, drafted by Temporal researcher cavemanloverboy, focuses on adding a base fee to transactions that varies with resource consumption.
Early predictions suggested this mechanism could increase the network's daily SOL destruction rate to 64,800. However, subsequent analysis by Blockworks indicated a more realistic range of 2,592 to 21,600 SOL per day.
If both SIMD-0550 and SIMD-0547 are ultimately approved, the net inflation rate of SOL could theoretically turn negative, meaning the asset could enter deflation for the first time.
Pledgers may be able to participate in voting directly.
With several key proposals ready to enter the voting stage, Solana validators are also advancing a new governance framework that focuses on allowing stakers to participate directly in the voting process.
In some previously controversial proposals, voting rights were primarily exercised by validators. Stakers often had to transfer their SOL tokens to validators who shared their views if they wanted to express their opinions. If the new mechanism is implemented, stakers will be able to vote directly on proposals, no longer relying entirely on validator representation.
Currently, there is no official voting schedule for SIMD-0550 and SIMD-0547. However, judging from the level of discussion within the ecosystem, adjustments to the SOL issuance and destruction mechanism have become one of the most pressing governance issues for Solana.
