Two of the three proposals under consideration could put downward pressure on SOL’s supply growth by speeding up the network’s inflation reduction and dramatically increasing the amount of SOL burned each day, from about 650 tokens to as many as 9,000.
Solana validators began voting Sunday on three governance proposals, with two aimed at reducing the growth of circulating SOL. Voting is scheduled to remain open until around 15:30 UTC on Thursday.
The voting system gives greater weight to validators based on the amount of SOL they have staked. It also allows regular token holders to participate indirectly by delegating their SOL to validators.
SGP-0002 focuses on Solana’s inflation schedule. The network currently reduces its annual rate of new SOL issuance by 15%, but the proposal would increase that reduction to 30%, allowing the network to reach its long-term inflation floor faster.
SGP-0003 would overhaul Solana’s transaction-fee structure. Fees would be divided between a fixed payment to the block producer and a variable component determined by the computational resources required. The variable portion would then be permanently removed from circulation.
Earlier reporting from CoinDesk estimated that SGP-0003 could raise daily SOL burns from roughly 650 tokens to between 7,500 and 9,000. Based on Monday’s SOL price, that would equal approximately $61,000 to $846,000 in tokens destroyed every day.
Together, the proposals could slow the creation of new SOL while increasing the amount permanently removed from supply. However, neither measure directly addresses whether demand for SOL will increase.
SGP-0001 takes a different approach and does not change SOL’s monetary policy. Instead, it would formally adopt the Solana Constitution, a framework outlining how the network makes decisions, while activating the software needed to conduct governance votes. Previously, major Solana changes were largely settled through informal coordination between developers and major network operators.
The simultaneous votes create an unusual governance scenario. SGP-0001 would formally establish the voting framework, yet SGP-0002 and SGP-0003 are already being decided using that system. Their outcomes could be determined before the rules governing the voting process itself receive formal approval.
SOL was trading above $96 early Monday, up 1.6% over the previous 24 hours and approximately 28% over the past seven days.
