SOL holds above $109 as the fee overhaul trails two-thirds

Solana traded just above $109 on Friday, up about 50% this month. Validators are casting the chain’s first governance vote, whose result Solana has to follow.

This could slow down the creation of new SOL and increase the amount burned every day.

Solana’s staking yield would slide to 2.25% in three years

Three proposals are available on the ballot. Validators vote, and anyone who has staked SOL with them votes too.

Nothing is settled until epoch 1023 wraps up. Solana was only about two-thirds of the way there on Friday.

SGP-0001 would ratify a Solana Constitution, codifying how these decisions are made. This turns on the svmgov on-chain governance system.

At least a third of all staked SOL has to vote. Two-thirds of the stake that votes has to say yes. Abstaining is not recorded as a no, but it still counts in the total, so it works against a proposal just as a no would.

All three proposals have cleared the quorum. SGP-0001 leads with 95.33% support, and SGP-0002 has 68.63%, both above the two-thirds bar.

SGP-0003 has 62.63% yes votes, short of the same bar, with abstentions at 20.74%.

SGP-0002 is related to SIMD-0550 and was written by Helius engineers Lostin and 0xIchigo. It proposes to double the network’s annual disinflation rate from 15% to 30%.

This proposal quickens the descent to Solana’s current 1.5% terminal floor. That would mean hitting the floor in 2029, instead of 2032, which strips ~18.9 million SOL from future emissions.

Cryptopolitan reports that under the authors’ 68% staking-participation scenario, staking yield starts at 5.84% but then moves to 4.34% after a year, 3% after two, and 2.25% after three.

SGP-0003 would divide Solana’s flat per-signature charge into two parts, along with SIMD-0553 from Temporal’s cavemanloverboy.

There is a fixed inclusion fee of 2,500 lamports paid to the block leader and a resource fee proportional to the compute a transaction uses that is burned.

The change could boost daily SOL burns from ~650 to between 7,500 and 9,000.

At current prices, that ranges from around $47,000 to as much as $650,000 a day.

Inflation still creates about 64,000 SOL every day, so even at 9,000 SOL, the burn offsets about 14% of new supply.

1.3 billion transactions in a week set a network record

The Nasdaq-listed Solana Company endorses the governance framework but votes against both economic proposals, citing their timing rather than their goals.

DeFi Development Corp., which trades on Nasdaq as DFDV and holds SOL as its main reserve, said on August 4 it supports both changes and would vote yes.

In March 2025, a proposal to cut inflation by 80% failed, with 61.39% of the participating stake voting in favor, below the two-thirds hurdle these votes demand.

SOL is having its best month since 2024, and network usage hit records along with it.

Solana set the record for the most non-voting transactions in a week with over 1.3 billion. The driver was the 2.6 million daily active users and a resurgence in meme-token trading through the FOMO app and Pump.fun, Cryptopolitan reported.

The heightened activity pushed Solana’s daily burn rate to 1.53% as of August 23, which is the highest since early 2025.