A Solana developer known as cavemanloverboy (also Dr Cavey phd) has published governance proposal SIP-547, aiming to fundamentally change how SOL tokens are burned. The proposal argues that the current flat base fee of 2,500 lamports per transaction burns only a negligible amount—approximately 648 SOL per day at 3,000 TPS—compared to roughly 60,000 SOL daily issuance from staking rewards and inflation.
Instead of a simple fee increase, which the developer warns could threaten decentralization and market structure, the proposal introduces a resource-based base fee system. Under this model, the entire fee collected would be burned, with fees scaled according to the computational resources consumed by each transaction. The suggested rate is 0.1 lamport per cost unit requested, carefully chosen to avoid materially raising costs for market makers. Depending on transaction type, cost increases could vary widely: a USDC swap via DFlow would rise only 2%, while a SOL-to-TRANSCEND transaction on Pump with no priority fee could see a 639% jump.
The draft estimates that if most blocks request between 50 million and 300 million cost units, the new mechanism could burn an additional 1,080 to 6,480 SOL daily—still well below total issuance, but a significant improvement. Some commenters noted that empirical data suggests current burn would fall in the 1,500–1,800 SOL range, and that to reach even 1% deflation would require ten times current demand.
The discussion quickly attracted high-profile support. Solana co-founder Anatoly Yakovenko responded with a call to “make another simd to double the disinflation rate,” referencing the earlier failed SIMD-0228 vote. Helius CEO Mert Mumtaz pointed to SIMD-0411, an existing proposal to accelerate Solana’s disinflation rate from 15% to 30% per epoch, which would bring terminal inflation (1.5%) in just 3.1 years instead of 6.2, reducing emissions by an estimated 22.3 million SOL over six years. Solana Foundation Chief Product Officer Vibhu Norby also signalled interest.
The renewed push comes after SIMD-0228’s defeat in March 2025, where a market-based emissions model secured only 61.6% support—short of the required two-thirds threshold. That failure highlighted conflicts over validator economics and decentralization, which now frame the current debate. At press time, SOL traded at $81.41.
