Solana’s Proposed Changes Could Make SOL Deflationary
- Solana developer Cavemanloverboy proposed SIMD-547 to reduce SOL inflation by increasing transaction fees.
- The proposal suggests daily SOL burning could rise from 648 to between 10,800 and 64,800 tokens.
- Michael Hubbard, CEO of SOL Strategies, criticized the proposal for potentially hindering institutional and AI use cases on Solana.
SIMD-547 aims to make Solana’s network issuance deflationary during high activity periods by significantly increasing fee burning rates. The proposal has sparked debate about its impact on Solana’s ability to support new use cases and maintain competitive transaction speeds.
If approved, the changes could increase burned SOL value from $3.6 million to $36 million monthly, depending on network activity levels. (Source)
