Two Solana supply reforms moved into formal discussion this week after the network's governance interface marked both proposals' 15% stake-support thresholds as met. SGP-0002 accelerates disinflation by doubling the annual reduction rate, while SGP-0003 rewires the fee structure to burn resource fees entirely. Discussion ends Aug. 22 at 15:13 UTC, after which a binding vote and any feature-gate changes would determine whether the economics shift on-chain.
SGP-0002 targets issuance directly. The proposal raises the annual disinflation rate from 15% to 30% while keeping the 1.5% terminal target and existing reward mechanism intact. According to the authors' model, the network reaches that terminal rate in roughly 2.8 years — nearly three years faster than the current 5.7-year path. Over six years, the model yields about 18.9 million fewer SOL, or 2.6% less total issuance. Staking yield falls alongside the issuance curve: under a 68% participation scenario, yield drops from 5.84% at launch to 4.34% after year one, 3% after year two, and 2.25% after year three. Commissions, MEV, and block rewards sit outside that calculation.
SGP-0003 attacks the fee side. Today each signature carries a 5,000-lamport base fee, split evenly between burn and block leader. The proposal replaces that with a 2,500-lamport inclusion fee paid entirely to the leader and a separate, usage-based resource fee burned in full. Priority fees continue flowing to leaders. The resource charge steps through 0.1, 0.25, and 0.5 lamport per requested cost unit. Using May 2026 network data, the authors estimate daily burns of 1,500–1,800 SOL at the first rate, rising to 7,500–9,000 SOL at the terminal rate. Signature fees currently burn about 648 SOL a day.
| Metric | Current | SGP-0003 Terminal Rate |
|---|---|---|
| Daily SOL burned (fees) | ~648 | 7,500–9,000 |
| Annual disinflation rate | 15% | 30% (via SGP-0002) |
|---|---|---|
| Terminal inflation target | 1.5% | 1.5% |
| Time to terminal rate | 5.7 years | ~2.8 years |
|---|---|---|
| Projected 6-year issuance reduction | — | 18.9M SOL (2.6%) |
Who built it and why now
Helius and Jupiter appear as the largest named backers on both proposals, staking 16 million SOL and 12.47 million SOL respectively. Helius CEO Mert Mumtaz called the milestone the first step toward discussion and a final on-chain vote. The proposals emerged from a governance system designed to give stakers a lever over validator power in future inflation debates — a tension that has persisted since Solana's early tokenomics discussions. Both proposals clear the same 15% threshold but address different levers: issuance velocity and fee capture. The simultaneous advancement suggests coordinated pressure from infrastructure operators who bear the cost of an inflation schedule they argue no longer matches network maturity.
On-chain data shows circulating supply at 582.05 million SOL against a total supply of 631.76 million. At $72.58 per SOL, the network commands a $42.25 billion market cap and ranks seventh by valuation. Twenty-four-hour volume sits at $1.4 billion, down 14.7% on the day. The validator set currently counts roughly 290 unprofitable operators at baseline; the SGP-0002 model projects that figure rising to 292 after one year, 303 after two, and 320 after three — sensitive to SOL price, operating expenses, commissions, and voting costs. The terminal rate remains 1.5%, so SGP-0002 concentrates margin pressure into an earlier window.
How it changes the competitive position
If both proposals pass, Solana would shift from a network where fee burns are incidental to one where resource consumption directly reduces supply. The projected 7,500–9,000 SOL daily burn at terminal rate would represent a meaningful deflationary offset against ongoing emissions, bringing the fee-burn mechanism closer in design to Ethereum's EIP-1559 model but tied to compute units rather than base fees. For stakers, the accelerated disinflation compresses the yield curve — a trade-off validators and delegators will weigh against the scarcity narrative. For developers, the resource-fee model penalizes inefficient compute budgeting, potentially reshaping transaction design patterns across DeFi and high-throughput applications.
The next milestone
The discussion period closes Aug. 22 at 15:13 UTC. Governance records show both proposals in discussion status; a formal vote follows if discussion concludes without withdrawal. Implementation and feature-gating would come after any successful vote, meaning on-chain economics would not change until the feature gates activate. Traders and stakers should watch the vote participation rate and the distribution of stake across validators — a concentrated validator set could sway the outcome regardless of broader staker sentiment.