A proposal has been submitted that will bring significant changes to Solana, one of the world's largest altcoins.
According to Coindesk, Solana's validators are submitting proposals to increase fee burns and reduce token issuance of $SOL.
At the moment, Solana's validators are proposing two governance proposals, SIMD-0550 and SIMD-0553, aimed at reducing the supply of $SOL and increasing token burns.
If adopted, these two proposals could lead to significant changes in Solana's current economic model. The goal of the proposals is to significantly increase the daily volume of $SOL burned on the network compared to current levels.
These proposals could increase the network's daily consumption from 650 $SOL (US$47,000) to 9,000 $SOL (US$650,000).
It could also shift Solana's target for reaching 1.5% inflation from 2032 to 2029, reducing the supply by approximately 18.9 million $SOL over six years.
Some experts argue that simply increasing the fuel burn may not be enough to turn Solana into a deflationary system. They state that even if the daily fuel burn increases to 9,000 $SOL, a deflationary shift would be difficult as it would remain below the 60,000 $SOL entering the market daily.
*This is not investment advice.
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