A proposal has been submitted that would make significant changes to Solana, one of the world’s largest altcoins.
According to Coindesk, Solana validators are offering suggestions to increase spending and reduce SOL issuance.
At this point, Solana validators are offering two governance proposals, SIMD-0550 and SIMD-0553, to reduce the supply of SOL and increase token burning.
If accepted, these two proposals could lead to significant changes in Solana’s current economic model. The proposals aim to substantially increase the daily amount of SOL burned in the network from current levels.
These proposals could increase the network’s daily consumption from 650 SOL ($47,000) to 9,000 SOL ($650,000).
It could also move Solana’s target of achieving 1.5% inflation from 2032 to 2029, reducing supply by approximately 18.9 million SOL over six years.
Some experts argue that an increase in fuel consumption alone may not be enough to transform Solana into a deflationary system. They claim that even if daily fuel consumption increases to 9,000 SOL, a deflationary shift will be difficult because it will remain below the 60,000 SOL injected into the market each day.
*This is not investment advice.
