// solana improvement document 547

Burn tied to real demand

SIMD-547 proposes a resource-based fee burn: a share of every fee is destroyed based on the actual compute a transaction consumes, not just the flat base fee. When Solana runs hot, $SOL gets meaningfully more deflationary.

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// the proposal

Today Solana’s burn is tied to a flat base fee. SIMD-547 makes it scale with the work a transaction actually does.

01

Base fee, not demand

The current burn is tied to a fixed base fee. Whether the network is idle or maxed out, roughly the same small amount leaves supply. Burn barely responds to how much Solana is actually being used.

02

Burn by resources used

SIMD-547 burns a portion of fees based on the real computational resources a transaction consumes. Heavier blocks, more compute, more $SOL destroyed. The burn finally tracks genuine network load.

03

Deflation that follows usage

The busier the chain, the harder it burns. Supply pressure turns down when the network is quiet and turns sharply up exactly when demand and activity spike.

// the numbers · SOL burned per day

During high activity, daily burn could jump from a sliver to rival all of daily inflation.

current burntoday
0
proposed · lowbusy
0
proposed · peakmaxed
0
daily inflation · ~60,000 SOL
0 more $SOL burned at peak vs today
0 of daily inflation offset at the high end
0 SOL per day, floor to peak burn

// how it works

A demand-driven burn loop.

  1. 1

    Usage rises

    Activity spikes. Blocks fill with heavier, compute-hungry transactions.

  2. 2

    Fees reflect real compute

    Fees are measured against the actual resources each transaction consumes.

  3. 3

    A share is burned

    A portion of those resource-based fees is permanently destroyed, removing $SOL from supply.

  4. 4

    Supply tightens with demand

    The more the network is used, the more $SOL leaves circulation. Burn scales with real demand.

// signal

Anatoly has signaled support for the direction: linking the burn to real network demand.

Anatoly Yakovenko · Solana co-founder

// why it matters

Supply dynamics that reward real usage.

Burn meets demand

It directly links $SOL destruction to genuine network activity instead of a fixed fee floor.

Deflationary under load

When usage spikes, $SOL becomes significantly more deflationary, exactly when it counts.

Better long-term supply

Stronger burn mechanics through bull-market activity can improve long-term supply dynamics.

Aligned with holders

Tighter supply through real demand is a structural tailwind for long-term holder value.