Solana blockchain is considering two related governance proposals that could significantly alter $SOL tokenomics. The proposals intend to alter token economy by accelerating disinflation and increasing $SOL burns. According to analysis from asset manager 21Shares, SIMD-550 and SIMD-553 proposals will reduce SOL issuance by approximately $1.4 billion to $1.5 billion over the next six years. However, these proposals are yet to pass the governance voting.

Solana May Reach 1.5% Inflation by 2029

SIMD-550 proposes doubling Solana’s annual disinflation rate from 15% to 30%. If approved, the network could reach its terminal inflation rate of 1.5% by the first half of 2029. Under the existing schedule, this target will be achieved in 2032. Staking yields would also decline as inflation falls.

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

Solana Supply Changes Could Support Long-Term SOL Growth

The combined proposals would reduce new SOL issuance while increasing the amount of tokens removed from circulation. However, the final impact will depend on the outcome of the SIMD-550 governance vote and the validator fee structure implemented under SIMD-553.

SOL is showing renewed price strength these days. Recently, the high-cap altcoin is trading near the $97 level after rising from $77. Yesterday it briefly touched the $100 mark. The move has brought the token back into focus as investors assess whether improving supply dynamics could provide an additional long-term catalyst for SOL.

21Shares noted that lower staking yields could potentially encourage capital to move towards more productive on-chain activities such as DeFi, supporting network usage and fee generation.

With Solana’s staking ratio currently near 68%, supporters argue that faster disinflation and higher burns could improve SOL’s long-term supply dynamics. Validators and market participants are now watching the governance process. Both these proposals could represent a major shift in Solana’s monetary policy.