Altcoins News

Story: Solana’s SIMD-0553 Could Push Daily SOL Burn Past 9,000 Tokens

By Dan Saada

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What SIMD-0553 Actually Changes. Right now, Solana's fee structure basically treats efficient transactions the same as wasteful ones.

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The Burn Rate Shift and Validator Concerns. The daily SOL burn rate currently sits at roughly 648 SOL.

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Governance Timeline and What's Next. SIMD-0553 entered Solana's on-chain governance process in early August, kicking off a support and…

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Solana wants to blow up its fee structure. The network is pushing a proposal — Solana Improvement Document SIMD-0553 — that would make resource-heavy transactions far more…

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The core idea is pretty straightforward: fees would no longer go to validators. Instead, they'd be burned outright, pulling SOL out of circulation permanently.

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The numbers backing this up are pretty striking. Five traders with high transaction failure rates submitted 11.

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For regular users, the picture looks better. Stablecoin and token transfers could get around 20% cheaper under the new structure.

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The daily SOL burn rate currently sits at roughly 648 SOL. If SIMD-0553 passes and resource demand is high, that number could jump to somewhere between 7,500 and 9,000 SOL per day.

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A separate proposal, SIMD-0550, is also floating around as another tool to speed up inflation reduction, though it's not the main focus here. SIMD-0553 is its own thing.

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See also: Copper Markets US Joins FINRA and SEC Roster, Eyes Institutional Crypto Push

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Validators aren't thrilled. Contributor bji flagged that validator income could drop by around 4% initially under the new model, since fees that previously went to them would now…

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The pricing-on-requested-resources approach is drawing its own criticism too. Contributor mschneider pushed back on the idea, arguing that charging based on actual resource use…

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SIMD-0553 entered Solana's on-chain governance process in early August, kicking off a support and discussion phase that runs roughly two weeks.

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Cavey isn't too worried about the complexity argument. Most users won't be calculating fees themselves — apps and exchanges handle that.

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See also: Virtual Token Jumps 10% as Whale Buying and Volume Surge Push $0.68 Into View

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