Solana is advancing two governance proposals, SIMD-550 & SIMD-553, that could significantly reduce SOL issuance and increase network-wide burns.

SIMD-550 would double the annual disinflation rate from 15% to 30%, bringing Solana to its 1.5% terminal inflation rate by H1 2029 instead of around 2032.

SIMD-553 introduces a burn fee based on requested compute units for financial activity. Based on current network usage, daily SOL burns could jump from roughly 600–800 SOL to 7,500–9,000 SOL.

Together, the proposals could reduce SOL issuance by an estimated $1.4B–$1.5B over six years, according to 21Shares.

The final impact will depend on the SIMD-550 governance vote and the validator fee design for SIMD-553.

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