Solana validators vote on proposals to cut about $1.5 billion in emissions

Solana validators are voting on two proposals to reduce future SOL emissions. The proposals could reduce projected emissions by about $1.4 billion to $1.5 billion over six years. SGP-0002 would double the annual disinflation rate from -15% to -30%. The proposal would shorten the path to Solana's 1.5% terminal inflation rate from about 5.7 years to 2.8 years. The terminal rate would arrive by H1 2029 instead of H1 2032. Nominal staking yield would fall to about 4.34% in the first year. It would fall to 3% in the second year. It would reach 2.25% in the third year. SGP-0003 would split Solana's 5,000-lamport signature fee into a 2,500-lamport base inclusion fee for the block leader and a resource fee based on requested compute units and the applicable resource fee rate. The resource fee would be burned. At current network activity, daily SOL burns would increase from about 600-800 SOL to about 7,500-9,000 SOL. 21Shares valued that daily burn at $712,500 to $855,000 as of August 24. The higher burn would not by itself offset current inflation of about $4.5 million per day. Voting will continue through epoch 1023. 21Shares said the proposals could roughly halve staking yields within two years and make SOL structurally scarcer. The proposals would not alter the protocol on their own. Approval would give developers a mandate, while technical work and activation timing would remain unsettled. 21Shares cited Cosmos' Proposal 848 and Ethereum's EIP-1559 as imperfect comparisons. ATOM rose 25% in the month after Cosmos reduced maximum inflation in November 2023. ATOM rose 10% over three months. ETH rose 37% in the month after EIP-1559 introduced a burn mechanism in August 2021. ETH rose 60% over three months. 21Shares said broader market conditions also supported both moves. SOL trades near $101 after gaining close to 20% over the past week. The advance tracks a broader market rally rather than the governance vote itself. 21Shares said the historical examples offer SOL holders a potentially bullish signal but do not guarantee a similar price reaction.