Overview
- Two linked proposals — SIMD-0550 and SIMD-0553 — would tighten tokenomics by cutting future issuance and changing fees, with SIMD-0550 doubling annual disinflation to 30% and pulling the 1.5% inflation floor forward to 2029.
- SIMD-0553 would replace the flat base fee with resource-based fees that authors estimate could raise daily SOL burns from about 650 to roughly 7,500–9,000 depending on network activity and developer fee settings.
- The governance campaign has gathered roughly 24.94 million SOL of support, heavily concentrated in Helius’s 16.03 million, and must attract about 40 million more stake to clear the 15% signaling gate before the Aug. 18 deadline to reach a formal vote.
- Even at the top burn projection the changes would not by themselves make SOL deflationary because the network currently issues about 60,000 SOL per day, so the package mainly reduces future dilution and could lower staking yields.
- The plan faces technical and political hurdles: Firedancer sign-off remains pending, smaller validators worry faster disinflation will cut revenue, and the proposals follow a failed March 2025 effort that warned governance support is not guaranteed.