Solana SIMD-0550 and SIMD-0553: How the network aims to slash SOL supply, and the Galaxy Research reality check
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left... Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of...
Published byEdited with DeepSeek-V4-FlashImages generated with GPT Image 1.5
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left...
Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of ETH staked, but faces 99.77% validator opposition, making it unlikely to pass in its current form.
What fee structure and inflation changes are proposed in Solana's SIMD-0553 and SIMD-0550 governance proposals, what is their current governSolana's SIMD-0553 and SIMD-0550 proposals could reshape SOL supply dynamics, but Galaxy Research warns that demand is the ultimate price driver.
AI Prompt
Create a landscape editorial hero image for this Studio Global article: What fee structure and inflation changes are proposed in Solana's SIMD-0553 and SIMD-0550 governance proposals, what is their current govern. Article summary: Here is the full breakdown of the three proposals and Galaxy Research's framing.. Topic tags: general, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers, clickbait thumbnails, icons, and tiny thumbnail layouts. Make it useful as an illustrative visual, not as factual evidence.
openai.com
Both Solana and Ethereum are actively reconsidering their token issuance policies in mid-2026. For Solana, two linked proposals — SIMD-0553 and SIMD-0550 — are now in a formal validator vote. Ethereum's researchers have introduced EIP-8361, which faces steep opposition. Galaxy Research argues that while these supply-side changes are significant, the real constraint on token prices remains user demand for blockspace.
SIMD-0553: Resource-based fees and a 14x burn increase
SIMD-0553 replaces Solana's current flat 5,000-lamport per-signature fee with a two-part structure: a fixed 2,500-lamport inclusion fee paid to the block leader, and a variable resource fee computed from the cost units a transaction requests, which is fully burned. The rate ramps through three feature gates to a terminal of 1/2 lamport per cost unit.
The impact on daily token burns is substantial. At current activity levels, daily SOL burns would rise from roughly 650 SOL ($47,000) to between 7,500 and 9,000 SOL ($650,000) — a 12-14x increase. The resource fee prices heavier transactions according to the network capacity they actually consume, rather than a flat signature count.
Studio Global AI
Continue your research
This page includes a source-backed answer you can continue inside Studio Global.
What is the short answer to "Solana SIMD-0550 and SIMD-0553: How the network aims to slash SOL supply, and the Galaxy Research reality check"?
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left...
What are the key points to validate first?
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left... Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of ETH staked, but faces 99.77% validator opposition, making it unlikely to pass in its current form.
Solana SIMD-0550 and SIMD-0553: How the network aims to slash SOL supply, and the Galaxy Research reality check
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left... Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of...
Published byEdited with DeepSeek-V4-FlashImages generated with GPT Image 1.5
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left...
Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of ETH staked, but faces 99.77% validator opposition, making it unlikely to pass in its current form.
What fee structure and inflation changes are proposed in Solana's SIMD-0553 and SIMD-0550 governance proposals, what is their current governSolana's SIMD-0553 and SIMD-0550 proposals could reshape SOL supply dynamics, but Galaxy Research warns that demand is the ultimate price driver.
AI Prompt
Create a landscape editorial hero image for this Studio Global article: What fee structure and inflation changes are proposed in Solana's SIMD-0553 and SIMD-0550 governance proposals, what is their current govern. Article summary: Here is the full breakdown of the three proposals and Galaxy Research's framing.. Topic tags: general, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers, clickbait thumbnails, icons, and tiny thumbnail layouts. Make it useful as an illustrative visual, not as factual evidence.
openai.com
Both Solana and Ethereum are actively reconsidering their token issuance policies in mid-2026. For Solana, two linked proposals — SIMD-0553 and SIMD-0550 — are now in a formal validator vote. Ethereum's researchers have introduced EIP-8361, which faces steep opposition. Galaxy Research argues that while these supply-side changes are significant, the real constraint on token prices remains user demand for blockspace.
SIMD-0553: Resource-based fees and a 14x burn increase
SIMD-0553 replaces Solana's current flat 5,000-lamport per-signature fee with a two-part structure: a fixed 2,500-lamport inclusion fee paid to the block leader, and a variable resource fee computed from the cost units a transaction requests, which is fully burned. The rate ramps through three feature gates to a terminal of 1/2 lamport per cost unit.
The impact on daily token burns is substantial. At current activity levels, daily SOL burns would rise from roughly 650 SOL ($47,000) to between 7,500 and 9,000 SOL ($650,000) — a 12-14x increase. The resource fee prices heavier transactions according to the network capacity they actually consume, rather than a flat signature count.
Studio Global AI
Continue your research
This page includes a source-backed answer you can continue inside Studio Global.
What is the short answer to "Solana SIMD-0550 and SIMD-0553: How the network aims to slash SOL supply, and the Galaxy Research reality check"?
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left...
What are the key points to validate first?
Solana's combined SGP 0003 governance vote would hike daily SOL burns 12–14x (to 7,500–9,000 SOL) and reach terminal 1.5% inflation by 2029 instead of 2032 — a formal stake weighted vote is underway with 10 days left... Ethereum's parallel EIP 8361 proposal would burn validator rewards to zero net issuance at 50% of ETH staked, but faces 99.77% validator opposition, making it unlikely to pass in its current form.
The proposal was authored by Temporal's "cavemanloverboy," the same engineer behind a 100k-TPS stress test on Solana mainnet.
SIMD-0550: Accelerated disinflation
SIMD-0550 doubles Solana's annual disinflation rate from 15% to 30%, halving the time to reach the terminal inflation floor of 1.5%. The terminal floor would be reached by 2029 instead of 2032.
The net effect removes an estimated 18.9 million SOL of future emissions compared to the current schedule. The proposal was authored by Helius engineers "lostintime101" and "0xIchigo."
Governance status: SGP-0003 bundles both into a formal vote
The two SIMDs are combined into a single governance vote called SGP-0003 (Signaling Governance Proposal 3).
Signaling threshold: Proposals need validator support representing 15% of active stake (65.16 million SOL, ~$4.7B) to advance to a formal stake-weighted vote.
Milestone: The threshold was passed on August 5, 2026, when Helius validators supplied the final stake weight, triggering an 11-epoch formal voting window.
Current status (as of Aug 8): The formal vote is underway with approximately 10 days remaining.
Key backers:Helius (provided the decisive validator stake), Blueshift, and Temporal Emerald are the leading named validators backing the proposal. Jupiter was listed among supporters during the signaling phase.
Voting deadline: The signaling window closes August 18, 2026.
Ethereum's EIP-8361: Tapered issuance burn
EIP-8361 proposes a "Tapered Issuance Burn," published August 4, 2026, by six researchers including Ethereum Foundation's Justin Drake. At each epoch boundary, the network deducts and burns a fraction of every validator's idealized duty reward. The burn fraction rises with the staking ratio, reaching zero net consensus-layer issuance at ~50% of ETH supply staked (a fixed saturation balance of ~60.25 million ETH).
A key detail: this targets only consensus-layer (CL) issuance, not execution-layer tips or MEV — so stakers would still earn from those sources even at zero nominal issuance.
Status: This is a draft EIP published for discussion; no formal validator vote has been scheduled. Galaxy Research reports that the proposal faces 99.77% validator opposition on early polling, making adoption unlikely in its current form.
Galaxy Research: Demand, not supply, is the binding constraint
Galaxy Research (Vice President Lucas Tcheyan) published an analysis on August 7-8, 2026 arguing that supply-side adjustments alone will not meaningfully reprice ETH or SOL. Key points:
Ethereum: EIP-8361's supply-side hopes are "quashed by 99.77% validator opposition," shifting the focus back to demand as the price driver.
Solana: The SIMD-0553 burn mechanism may create short-term hype, but daily inflation still mutes any deflationary impact — the network currently issues ~25,000-30,000 SOL/day in staking rewards, far exceeding even the proposed 7,500-9,000 SOL/day burn.
Core thesis: The fundamental question both networks face is "how much security budget is required," and adjusting issuance parameters is a second-order effect relative to whether onchain activity (demand for blockspace) generates enough fee revenue. The healthier long-term state is one where validating becomes a "thin-margin utility attached to a profitable onchain economy" rather than relying on inflation subsidies.
Feature
Solana SIMD-0553
Solana SIMD-0550
Ethereum EIP-8361
Mechanism
Resource-based fee, fully burned
Double disinflation rate (15% → 30%)
Burn rising share of CL validator rewards as staking ratio climbs
Supply effect
Daily burn ~14x higher (650 → 9,000 SOL)
Terminal 1.5% inflation reached by 2029 vs 2032
Net CL issuance → zero at ~50% staked
Status
Formal vote underway (passed 15% threshold Aug 5)
Same vote as SIMD-0553
Draft EIP, no formal vote; 99.77% validator opposition
Vote deadline
~August 18, 2026
~August 18, 2026
None set
Key backers
Helius, Blueshift, Temporal
Helius, Blueshift, Temporal
Justin Drake + 5 researchers; very low validator support
The bottom line
Both chains are attempting significant supply-side adjustments. Solana's proposals are further along in governance, with a formal vote underway. Ethereum's EIP-8361 is a draft facing overwhelming validator opposition. According to Galaxy Research, neither chain's supply-side fix addresses the binding constraint — whether real user demand for blockspace can sustain network security budgets without relying on inflation. Supply cuts help at the margin, but do not substitute for organic fee revenue growth.
cryptopolitan.comGalaxy warns supply cuts alone won't reprice ETH or SOL - Cryptopolitan
The proposal was authored by Temporal's "cavemanloverboy," the same engineer behind a 100k-TPS stress test on Solana mainnet.
SIMD-0550: Accelerated disinflation
SIMD-0550 doubles Solana's annual disinflation rate from 15% to 30%, halving the time to reach the terminal inflation floor of 1.5%. The terminal floor would be reached by 2029 instead of 2032.
The net effect removes an estimated 18.9 million SOL of future emissions compared to the current schedule. The proposal was authored by Helius engineers "lostintime101" and "0xIchigo."
Governance status: SGP-0003 bundles both into a formal vote
The two SIMDs are combined into a single governance vote called SGP-0003 (Signaling Governance Proposal 3).
Signaling threshold: Proposals need validator support representing 15% of active stake (65.16 million SOL, ~$4.7B) to advance to a formal stake-weighted vote.
Milestone: The threshold was passed on August 5, 2026, when Helius validators supplied the final stake weight, triggering an 11-epoch formal voting window.
Current status (as of Aug 8): The formal vote is underway with approximately 10 days remaining.
Key backers:Helius (provided the decisive validator stake), Blueshift, and Temporal Emerald are the leading named validators backing the proposal. Jupiter was listed among supporters during the signaling phase.
Voting deadline: The signaling window closes August 18, 2026.
Ethereum's EIP-8361: Tapered issuance burn
EIP-8361 proposes a "Tapered Issuance Burn," published August 4, 2026, by six researchers including Ethereum Foundation's Justin Drake. At each epoch boundary, the network deducts and burns a fraction of every validator's idealized duty reward. The burn fraction rises with the staking ratio, reaching zero net consensus-layer issuance at ~50% of ETH supply staked (a fixed saturation balance of ~60.25 million ETH).
A key detail: this targets only consensus-layer (CL) issuance, not execution-layer tips or MEV — so stakers would still earn from those sources even at zero nominal issuance.
Status: This is a draft EIP published for discussion; no formal validator vote has been scheduled. Galaxy Research reports that the proposal faces 99.77% validator opposition on early polling, making adoption unlikely in its current form.
Galaxy Research: Demand, not supply, is the binding constraint
Galaxy Research (Vice President Lucas Tcheyan) published an analysis on August 7-8, 2026 arguing that supply-side adjustments alone will not meaningfully reprice ETH or SOL. Key points:
Ethereum: EIP-8361's supply-side hopes are "quashed by 99.77% validator opposition," shifting the focus back to demand as the price driver.
Solana: The SIMD-0553 burn mechanism may create short-term hype, but daily inflation still mutes any deflationary impact — the network currently issues ~25,000-30,000 SOL/day in staking rewards, far exceeding even the proposed 7,500-9,000 SOL/day burn.
Core thesis: The fundamental question both networks face is "how much security budget is required," and adjusting issuance parameters is a second-order effect relative to whether onchain activity (demand for blockspace) generates enough fee revenue. The healthier long-term state is one where validating becomes a "thin-margin utility attached to a profitable onchain economy" rather than relying on inflation subsidies.
Feature
Solana SIMD-0553
Solana SIMD-0550
Ethereum EIP-8361
Mechanism
Resource-based fee, fully burned
Double disinflation rate (15% → 30%)
Burn rising share of CL validator rewards as staking ratio climbs
Supply effect
Daily burn ~14x higher (650 → 9,000 SOL)
Terminal 1.5% inflation reached by 2029 vs 2032
Net CL issuance → zero at ~50% staked
Status
Formal vote underway (passed 15% threshold Aug 5)
Same vote as SIMD-0553
Draft EIP, no formal vote; 99.77% validator opposition
Vote deadline
~August 18, 2026
~August 18, 2026
None set
Key backers
Helius, Blueshift, Temporal
Helius, Blueshift, Temporal
Justin Drake + 5 researchers; very low validator support
The bottom line
Both chains are attempting significant supply-side adjustments. Solana's proposals are further along in governance, with a formal vote underway. Ethereum's EIP-8361 is a draft facing overwhelming validator opposition. According to Galaxy Research, neither chain's supply-side fix addresses the binding constraint — whether real user demand for blockspace can sustain network security budgets without relying on inflation. Supply cuts help at the margin, but do not substitute for organic fee revenue growth.
cryptopolitan.comGalaxy warns supply cuts alone won't reprice ETH or SOL - Cryptopolitan
galaxy.comSolana Q4 2025 Update: Weathering the Downturn - Galaxy
cryptonews.netEthereum and Solana Reassess Token Issuance Policies, Galaxy Research Says