Solana Developer Proposes Tokenomics Revamp That Could Make SOL Deflationary
Summary
- A Solana developer proposed introducing a resource-based fee burn mechanism.
- Under the model, Solana's daily burn volume could increase to between 10,800 and 64,800 SOL depending on network utilization.
- If daily new issuance is exceeded by burn volume, Solana's supply would decline on a net basis, effectively creating a deflationary structure.
Forecast Trend Report by Period
A Solana developer has proposed a tokenomics overhaul that could turn SOL into a deflationary asset as network usage increases.
SolanaFloor reported on June 31 that Solana developer cavemanloverboy proposed introducing a "Resource-Based Fee Burn" mechanism, which would burn fees in proportion to network resource consumption.
If adopted, the proposal could sharply increase the amount of SOL burned during periods of heavy network activity.
Solana currently burns an estimated 648 SOL a day. Under the proposed model, that figure could rise to between 10,800 and 64,800 SOL a day, depending on network utilization.
That is roughly in line with, or higher than, Solana's current daily issuance of about 60,000 SOL.
If network usage rises enough for daily burns to exceed new issuance, Solana's supply would decline on a net basis, effectively creating a deflationary structure.
The proposal's author argued that Solana's current fee system does not adequately reflect network resource usage. The network should be designed to burn more SOL as actual demand increases.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
