The Solana network is currently voting on two governance proposals aimed at overhauling its economic model. Voting on SGP-0002 (SIMD-0550) and SGP-0003 (SIMD-0553) is open to validators and delegators through epoch 1023, expected to conclude on August 27, 2026, at 15:30 UTC.
Proposal SIMD-0550 recommends doubling the annual disinflation rate from 15% to 30%. This acceleration would bring Solana’s terminal inflation rate to 1.5% around 2029, or approximately 2.8 years from now, well ahead of the original timeline of 2032.
The second proposal, SIMD-0553, overhauls the transaction fee structure. The current model, featuring a fixed base fee of 5,000 lamports per signature, is split into two distinct components: 2,500 lamports will go to the block leader as an inclusion fee, while the remainder will be charged as a resource fee that is immediately burned from the system.
The resource fee will fluctuate based on computing capacity and account data demand. Research firm Temporal estimates this new mechanism could increase daily token burns from around 648 SOL to between 7,500 and 9,000 SOL. That 12- to 14-fold surge could take effect under current network activity levels.
Internal Pushback
The overhaul plan has triggered resistance. Solana Company, a Nasdaq-listed SOL treasury operator, declared its opposition to both proposals. Its primary argument states that modifying core network parameters will complicate revenue projections for institutional investors.
The objection aligns with the company’s primary revenue source. In the second quarter of 2026, Solana Company recorded $2.512 million in revenue from staking activities. A reduction in new token issuance would directly impact its revenue stream.
Strict Passing Threshold
Passing these changes requires more than a simple majority. Both proposals demand a quorum exceeding one-third of all staked assets. Of the total votes cast, the passing threshold is set at 66.67%, excluding abstentions.
In a previous attempt, an 80% inflation cut proposal failed to pass despite securing 61.39% approval, falling short of the absolute threshold.
Even if SGP-0002 and SGP-0003 are approved by the August 27 deadline, the impact will not be immediate and will serve only as a governance mandate. Core developers will still need to write the code, conduct testing, coordinate implementation with validators, and set a feature-lock schedule.
The final choice now lies with network participants: preserve stable short-term yields, or curb issuance to bolster asset scarcity. Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
