The SOL price could soon benefit from one of the biggest supply-side changes Solana has considered in years.Two governance proposals, SIMD-550 and SIMD-553, are moving through the Solana ecosystem, and both are focused on the same goal: reducing the amount of SOL entering circulation.
If the proposals deliver as expected, they could remove between $1.4 billion and $1.5 billion worth of projected SOL issuance over the next six years. That has naturally raised an important question among investors: could a tighter supply model help the SOL price over the long run?
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What you'll learn 👉
Solana Wants To Reduce Inflation Faster
The first proposal, SIMD-550, focuses on Solana’s inflation schedule. The proposal would double Solana’s annual disinflation rate from 15% to 30%. That would speed up the timeline for reaching the network’s terminal inflation rate of 1.5%.
Solana Burn Could Jump Tenfold Under New Plan
— BSCN (@BSCNews) August 27, 2026
Solana (@solana) could see daily solana:So11111111111111111111111111111111111111112 burns increase more than tenfold under SIMD-553.
The proposal would introduce fees based on the computational resources used by financial… pic.twitter.com/zymIBGBBBu
BSCN reported that estimates from 21Shares show Solana could hit that target by the first half of 2029, instead of the original 2032 timeline. So it’s basically accelerating the path to lower inflation by a few years.
Voting progress has also been encouraging for supporters of the proposal. Data shared by SolanaFloor showed participation reaching 33.84%, with enough support to reach quorum before voting closed.
🚨BREAKING: @Solana’s double disinflation proposal has reached quorum with 27 hours left in voting.
— SolanaFloor (@SolanaFloor) August 27, 2026
Participation hit 33.84%, with 25% voting yes. If passed, it would double disinflation to 30%, reducing $SOL issuance by $1.47B (18.9M $SOL) over six years. pic.twitter.com/y3fwxG5jkd
If approved, SIMD-550 is expected to reduce future issuance by about 18.9 million SOL, equivalent to roughly $1.47 billion at current valuations. That means millions of SOL that would have entered circulation over the next six years may never be created. For the SOL price, that translates into less future supply competing with market demand.
Daily SOL burns could increase dramatically
The second proposal, SIMD-553, focuses on burning more SOL according to Wu Blockchain. The proposal introduces fees based on the computational resources used by financial transactions on the network. The more activity consumes network resources, the more SOL can be burned.
Solana Proposals Could Sharply Increase SOL Burns and Cut Issuance by $1.4B-$1.5B Over Six Years
— Wu Blockchain (@WuBlockchain) August 26, 2026
According to 21Shares, Solana is advancing two governance proposals, SIMD-550 and SIMD-553. SIMD-550 would double the annual disinflation rate from -15% to -30%, moving Solana’s path… pic.twitter.com/rQ8jqgBRNX
This is where the numbers become interesting. Right now, Solana is burning about 600 to 800 SOL per day. But once the new system is fully in place, 21Shares estimates daily burns could jump to between 7,500 and 9,000 SOL.
That’s more than a tenfold increase in the number of tokens taken out of circulation every single day. That kind of supply reduction tends to get people’s attention. SIMD-553 has already cleared an important milestone after being approved and merged on July 20, bringing the proposal one step closer to affecting Solana’s token economics.
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What Does This Mean For Solana?
The reason investors are paying attention is simple. SIMD-550 reduces the rate at which new SOL is created. SIMD-553 increases the rate at which SOL is destroyed. Both proposals work toward lowering net supply growth.
If network activity remains healthy and burn rates reach the projected levels, Solana could see one of the most aggressive supply reductions among major cryptocurrencies. Of course, supply is only one side of the equation.
Demand still matters, and the SOL price will continue to depend on network usage, developer activity, and broader market conditions. Still, the numbers involved are hard to ignore. A potential reduction of $1.4 billion to $1.5 billion in projected issuance over six years would materially change Solana’s supply outlook.
For now, the SOL price is giving investors something new to watch. Instead of focusing only on adoption and network growth, the market is also starting to pay attention to how much SOL may never reach circulation in the first place.
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