Solana proposes two tokenomics changes aimed at increasing SOL token burns, potentially removing $1.4–$1.5B from circulation over six years.
Tech & Launches ·
Solana is advancing two governance proposals—SIMD-550 and SIMD-553—that would accelerate token burning and reduce staking rewards over the next six years. SIMD-553, approved in July 2026, introduces a burn fee on network compute units, while SIMD-550, under community vote since August 23, doubles the annual disinflation rate to compress the timeline to terminal inflation by mid-2029. Together the measures are projected to remove $1.4–$1.5 billion from circulation over six years, though SIMD-550 would cut staking yield from roughly 5.25% to approximately 3% within two years and could push some validators toward unprofitability by year three.