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Solana proposes new fee model to boost token burns 13x, cutting supply and accelerating deflation.

Protocol Fundamentals
04 Aug 2026
Tokenpost
View Source
Bullish
Solana proposes new fee model to boost token burns 13x, cutting supply and accelerating deflation.

Solana validators support a proposal to switch to a resource-based fee model that ties transaction fees and token burns to computing resources used, potentially increasing daily token burns from 650 to up to 9,000 SOL. Another proposal aims to double the annual deflation rate, accelerating supply reduction and reaching a lower inflation rate by 2029 instead of 2032. These changes could significantly reduce circulating supply and make Solana's tokenomics more responsive to network demand, similar to Ethereum's EIP-1559. The network is also rolling out performance upgrades and governance reforms, but the real impact depends on sustained high compute demand and governance outcomes.

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