Solana’s SIMD-0550 and SIMD-0553 Proposals Target 18.9M SOL Issuance Cut and 14x Burn Increase

 

By Muhammad Hassan // August 4, 2026 @ 10:11 AM Make AlphaWire Logo preferred on Google News
Solana Opens Support for 2 Proposals That Could Lift SOL Burns 14x and Cut Emissions

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Points of Focus

  • Solana validators are weighing proposals to cut issuance and raise SOL burns.
  • SIMD-0550 could remove 18.9 million SOL from six-year emissions.
  • SIMD-0553 could lift daily burns from 650 SOL to 9,000 SOL.

 

Solana validators have begun signaling support for two proposals aimed at slowing SOL supply growth. SIMD-0550 would cut future issuance, while SIMD-0553 would increase burns based on the network resources each transaction requests.

Both proposals entered the support phase this week, which determines whether validators will trigger a full stake-weighted vote. Falling short would prevent an SGP vote but would not automatically end the underlying SIMD review.

SolanaFloor reported that SIMD-0550 needs 43.27 million SOL, or 10% of active stake, to advance and had 16.93 million SOL in early support. That proposal-specific gate sits below the 15% default published in Solana’s SGP rules, which SIMD-0553 is using.

 

 

SIMD-0550 could cut 18.9M SOL emissions

Authored by Helius engineers Lostin and 0xIchigo, SIMD-0550 would raise Solana’s annual disinflation rate from 15% to 30% without changing the 1.5% terminal inflation rate.

The proposal estimates that Solana would reach that floor in about 2.8 years instead of 5.7 years. It would reduce emissions by roughly 18.9 million SOL over six years while leaving validator commission settings, transaction fees and maximal extractable value rules unchanged.

 

SIMD-0550 halves time to terminal inflation. Source: SolanaFloor
SIMD-0550 halves time to terminal inflation. Source: SolanaFloor

 

The narrower design follows SIMD-0228, a market-based inflation proposal that failed to win the required supermajority in March 2025. SIMD-0550 changes one parameter and preserves a predictable schedule.

 

SIMD-0553 ties SOL burns to network usage

SIMD-0553 would replace the current 5,000-lamport-per-signature charge with a flat 2,500-lamport inclusion fee per transaction for the block leader and a separate resource fee that is fully burned. The burn would reflect signature costs, write locks, instruction data, requested compute and loaded account data, with staged rates of 0.1, 0.25 and 0.5 lamports per cost unit. Priority fees would still go to validators.

Solana’s July 23 changelog said the technical proposal had been accepted, though its GitHub document still carried a Draft label as of August 4. The latest text says the mechanism can operate before or after Alpenglow, removing a dependency discussed in the earlier version.

The support launch cited a rise from roughly 650 SOL burned daily to as much as 9,000 SOL, close to a 14-fold increase. That figure is a projection because the burn depends on requested resources, network demand and which rate becomes active.

 

 

Current issuance remains near 60,000 SOL per day. Even at 9,000 SOL burned, net issuance would remain around 51,000 SOL daily, meaning the fee change alone would not make SOL deflationary. SIMD-0553 had 24.94 million SOL in support as of August 4, with signaling scheduled to close on August 18.

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Muhammad Hassan

Muhammad Hassan is a tech writer with over 11 years of experience in the crypto space. He specializes in crafting data-driven strategic content that helps blockchain and fintech brands grow their organic reach. He has led editorial initiatives for global crypto media outlets, where his strategies and article series have reached millions of readers worldwide.

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