A proposal has been submitted that will bring significant changes to Solana, one of the world's largest altcoins.
According to Coindesk, Solana validators are submitting proposals to increase fees and reduce the issuance of $SOL tokens.
Currently, Solana validators are proposing two governance proposals, SIMD-0550 and SIMD-0553, aimed at reducing the supply of $SOL and increasing token burns.
If passed, 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 in the network compared to current levels.
These proposals could increase the network's daily consumption from 650 $SOL ($47,000 USD) to 9,000 $SOL ($650,000 USD).
This could also shift Solana's target for achieving 1.5% inflation from 2032 to 2029, reducing the supply by approximately 18.9 million $SOL over six years.
Some experts argue that merely increasing fee consumption may not be enough to turn Solana into a deflationary system. They state that even if daily fee consumption increases to 9,000 $SOL, a deflationary shift will be difficult because it will remain below the 60,000 $SOL entering the market daily.
*This is not investment advice.
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