Solana Considers Cutting SOL Issuance by Up to $1.5B Over Six Years

BitcoinWorld Solana Considers Cutting SOL Issuance by Up to $1.5B Over Six Years Solana validators are currently voting on two governance proposals that could significantly reduce the rate of new SOL issuance and increase the burn of transaction fees, potentially cutting the token’s supply growth by up to $1.5 billion over the next six years.

The proposals, known as SGP-0002 and SGP-0003, were reported by BeInCrypto, citing analysis from 21Shares, a digital asset investment firm.

Understanding the Governance Proposals SGP-0002 aims to double the annual pace of inflation reduction for SOL, effectively accelerating the schedule by which new tokens are introduced into circulation.

Currently, Solana’s inflation rate decreases by 15% each year, but under this proposal, that reduction would increase to 30% annually, leading to a faster tapering of new supply.