cpeditor
- Two of Solana’s three active governance proposals could curb SOL’s supply expansion by accelerating the network’s inflation decline and increasing daily token burns from about 650 SOL to as much as 9,000 SOL.
- Solana validators started voting Sunday on the three proposals, with two specifically targeting the token’s supply dynamics. The voting window closes Thursday at approximately 15:30 UTC.
- Voting power depends on the amount of SOL staked, allowing validators and holders who delegate their tokens to participate in the decision-making process.
- SGP-0002 would speed up Solana’s path toward lower inflation. The network currently cuts new SOL issuance by 15% annually, but the proposal would raise that reduction rate to 30%, helping it reach its inflation floor sooner.
- SGP-0003 would restructure Solana’s transaction fees and their distribution. A fixed share would go to the validator producing the block, while a second portion tied to the computational requirements of each transaction would be permanently burned.
- Earlier CoinDesk estimates suggest the fee change could push daily SOL burns from around 650 tokens to 7,500-9,000 SOL. At Monday’s price, that would mean roughly $61,000 to $846,000 worth of SOL could be removed from circulation each day.
- Lower issuance combined with higher burns is the main reason the proposals have caught the attention of SOL holders. Still, neither measure directly guarantees stronger demand for the token.
- SGP-0001 takes aim at governance rather than supply. The proposal would ratify the Solana Constitution, establish a formal framework for network decisions and activate the software that powers governance votes. Until now, protocol changes have largely been settled through informal coordination among developers and major network operators.
- Voting on all three proposals at once creates an unusual situation. SGP-0001 is intended to formalize the voting framework, yet the two supply proposals are already being decided using that system. As a result, their outcomes could be determined before the rules behind the voting process are formally approved.
- SOL was trading above $96 early Monday, up 1.6% over the previous 24 hours and about 28% over the past week.
