[DigitalToday reporter Jinju Hong (홍진주)] Solana (SOL) validators have moved a governance proposal to sharply increase the daily amount of SOL burned and slow the pace of new issuance to the stage just before a formal vote. If passed, the rate of SOL supply growth would slow markedly, and changes to the long-term supply structure are expected.

According to blockchain outlet Decrypt on Monday local time, the proposal is Solana governance proposal SGP-0003. A key point is that it integrates two Solana improvement proposals that had been discussed separately.

The first would introduce a resource-based transaction fee system, expanding daily SOL burns to about 7,500 to 9,000 SOL from around 650 SOL depending on network activity. The second would raise the annual disinflation rate to 30 percent, bringing forward the time Solana reaches its 1.5 percent terminal inflation floor to 2029 from 2032.

If implemented together, the pace of SOL supply growth would slow more quickly. Burning sends tokens to an unrecoverable address, permanently removing them from circulation, and if the pace of new issuance also slows, circulating supply would shrink on both fronts.

The proposal is now in the stage of securing support for a formal vote. As of Aug. 5, it had received support of about 63 million SOL, securing more than 14.4 percent of the total staked amount. To advance to the next stage, it must secure support of about 65.16 million SOL by Aug. 18, requiring an additional roughly 3 million SOL at current levels.

A validator governance dashboard showed 73 validators had expressed support, including Helius, Jupiter, Staking Facilities, Drift, OtterSec and Solana Compass.

Mert (메르트), described as a Solana ecosystem figure, said on social media, "The Solana deflation and burn proposal is going into an early vote," adding, "If validators and SOL holders want the proposal, now is the time to send support."

Even so, expanding burns alone does not immediately make SOL a deflationary asset. The Solana network is currently issuing about 60,000 SOL a day. The proposal aims to maximize the supply-reduction effect by increasing burns while also lowering the rate of new supply growth.

The market has yet to reflect the proposal fully in prices. SOL is trading at about $74, with a market value of about $43 billion. It remains far below the record high of $293 set in the previous bull market.

Cautious views are also emerging in prediction markets. On Myriad, a prediction market operated by DASTAN, Decrypt's parent company, traders put the chance that SOL will fall to $40 before recovering $160 at about 70 percent.

Attention in the market is focusing on whether the supply-cut plan will pass governance, and what impact expectations of reduced supply could have on SOL's price and supply-demand balance.