Solana jumps 11.56% as governance vote targets lower SOL supply

Solana’s SOL token rose 11.56% in 24 hours to about $107 on August 27, rebounding from a daily low near $95 and extending gains of more than 24% over the past week and about 44% over the past month. The move followed an ongoing validator governance vote on SIMD-550 and SIMD-553, proposals that could reduce new SOL issuance and increase token burns. SIMD-550 would raise the annual reduction in new issuance from 15% to 30%, potentially helping Solana reach its 1.5% long-term inflation rate in 2029 rather than 2032. Helius estimates the change could prevent about 18.9 million SOL from being created over six years. SIMD-553 would add a burn fee to certain computing units linked to financial activity, potentially lifting daily burns from 600–800 SOL to 7,500–9,000 SOL. Together, the measures could reduce SOL emissions by about $1.4 billion to $1.5 billion over six years, although staking yield could decline from roughly 5.25% to 4.34% in the first year, 3% in the second and 2.25% in the third. Demand has also been supported by Solana-linked ETF inflows, plans by Charles Schwab to add Solana to its Schwab Crypto platform, and a near-doubling in trading volume. The source cites $104 million in ETF inflows over seven days in its highlights and $74.88 million in seven consecutive days of positive net inflows based on SosoValue data in the article. About $38 million in SOL positions were liquidated over 24 hours, according to Coinglass.

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Solana jumps 11.56% as governance vote targets lower SOL supply - CoinPost Terminal