An Update Set to Transform Solana from Top to Bottom Is Coming: The Daily Coin Burn Rate Will Increase by at Least 16 Times

Anatoly Yakovenko, co-founder of Solana, has signaled support for the SIMD-547 proposal, which aims to introduce additional token burning based on resource usage for high-cost transactions on the network.

The proposal suggests that if implemented, the amount of SOL burned daily in the Solana network could increase exponentially compared to current levels.

Currently, approximately 648 SOL are burned daily in the Solana network, but under the SIMD-547 program, this amount is projected to increase to between 10,800 and 64,800 SOL per day. Based on the current SOL price of approximately $82.5, the daily burning value could rise from approximately $53,000 to between $891,000 and $5.35 million. This represents an increase of approximately 16 to 100 times compared to the current burning rate.

The proposal envisages applying surcharges to transactions that use network resources more intensively and burning these charges. This way, as actual usage on the Solana network increases, more SOL will be withdrawn from circulation.

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According to the data, the daily new supply of SOL on the Solana network, driven by inflation, is approximately 60,000. If SIMD-547 operates at the upper limit, the daily burn amount could exceed the amount of newly issued tokens. In this scenario, Solana could become a net deflationary structure during periods of high network usage.

Analysts believe the implementation of the proposal could create a significant change in the SOL token economy. Higher burning rates are expected to reduce the circulating supply and strengthen the incentive mechanism based on network usage. However, price targets ranging from $150 to $500 are speculative estimates dependent on many factors such as market conditions, network activity, and investor demand.

SIMD-547 proposal has not yet been implemented. For the proposal to become effective, it needs to go through the relevant processes within the Solana ecosystem and be adopted by network participants.

*This is not investment advice.

Continue Reading: An Update Set to Transform Solana from Top to Bottom Is Coming: The Daily Coin Burn Rate Will Increase by at Least 16 Times