Solana rallies 44% this month ahead of a historic governance vote that could create a supply squeeze.
Regulation & Gov ·
Solana's token has gained more than 8% over the past 24 hours and roughly 44% this month, marking its strongest performance since 2024 and pushing SOL back above $105. The surge coincides with the network's first-ever binding governance vote, which closes today and will determine whether to accelerate the rate at which new SOL supply diminishes and significantly increase the amount burned daily. Traders have spent the week pricing in anticipated supply constraints before the outcomes are official.
Two paired proposals sit at the center of the vote. SIMD-550, submitted by Helius engineers, would double Solana's disinflation rate from 15% to 30% annually, reaching the network's long-term 1.5% floor by 2029 rather than 2032—resulting in roughly 18.9 million fewer tokens created over six years. However, the change would compress staking yields from approximately 5.25% today to around 2.25% within three years. SIMD-553, from Temporal, takes a separate approach by splitting transaction fees to permanently burn a "resource fee" component, potentially lifting daily burns from about 650 SOL to as much as 9,000 SOL depending on network activity—a 12-to-14x increase.
Solana Company, a Nasdaq-listed firm, is backing the governance framework itself but voting against both economic proposals, citing timing concerns rather than disagreement with the objectives. The vote concludes at approximately 15:30 UTC as epoch 1023 closes, marking the inaugural stake-weighted binding decision under Solana's new on-chain governance system.