Solana to Hold Preliminary Vote on Raising Inflation Reduction Rate to 30%

The Solana network is moving to increase the share of transaction fees that are burned while slowing the pace of new token issuance.

Crypto media outlet Odaily reported on August 3 that two related proposals will go to an initial vote later in the day.

If both proposals pass, Solana's annual inflation reduction rate will increase to 30%. That would reduce new SOL issuance by about $1.36 billion over the next six years compared with the current plan.

Average daily SOL burns are also projected to rise to 9,000 tokens from about 650 now. With new issuance falling and the number of tokens burned increasing, the changes would help ease supply pressure on SOL.