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SIMD-0553 would price Solana fees by computing resources and burn them, lifting daily burns from about 648 SOL to an estimated 7,500 to 9,000 fully phased in.
Created in June 2026, SIMD-0553, titled "Resource and Inclusion Fee," proposes changing how Solana charges for transactions. Each transaction would pay a fee based on the computing resources it requests. That fee would then be burned, permanently removing the SOL from supply.
The proposal would sharply increase the amount of SOL destroyed. Daily burns would rise from around 648 SOL to an estimated 7,500 to 9,000 SOL once the fee is fully phased in, based on current levels of network activity, roughly 12 to 14 times today's amount.
The proposal is moving through Solana's governance pipeline. The technical document is under review in the SIMD repository, and the fee change has been elevated to SGP-0003, a Solana Governance Proposal (SGP) now in the discussion phase ahead of a stake-weighted community vote that requires a two-thirds supermajority to pass. A successful vote is a mandate to proceed, with activation following through a network upgrade.
In this blog, we take a closer look at SIMD-0553 and what it could mean for institutional SOL holders and stakers.
Every Solana transaction pays a base fee of 5,000 lamports per signature. A lamport is one-billionth of a SOL, so the base fee is tiny, about 0.000005 SOL. Today, half of that fee is burned and half goes to the block leader, the validator building the block. Users can also add a priority fee to be processed faster, and priority fees go entirely to validators.
Currently, the base fee is flat. A transaction that asks for a large amount of computing power pays the same base fee as a simple transfer, so the cost of a transaction has little to do with the demand it places on the network. It also means Solana burns very little SOL. Supply projections published in the SIMD-0550 proposal show total supply growing from about 627.5 million to 650.4 million SOL over the coming year, roughly 23 million new SOL. Today's burns offset only about 1% of that.
The proposal splits the base fee into two parts. An inclusion fee of 2,500 lamports per signature goes to the block leader, the same amount they receive today. A new resource fee of up to 0.5 lamports per unit of requested computing resources is then burned in full. The rate steps up in stages, through 0.1, 0.25, and finally 0.5 lamports per unit, so the full burn arrives gradually. The more resources a transaction asks for, the more SOL it burns.
Transaction costs would shift as a result. Simple, low-compute transactions become slightly cheaper, because the fixed part of the fee falls from 5,000 to 2,500 lamports. Compute-heavy transactions pay noticeably more. Priority fees and MEV tips are untouched.
At current activity, burns would offset roughly 12% to 14% of new issuance, up from about 1% today. To be clear, SOL would still inflate. Even at 9,000 SOL burned per day, issuance remains far larger than the burn. The proposal slows supply growth; it does not reverse it.
The more important shift is structural. Issuance follows a fixed schedule, but burns under SIMD-0553 depend on usage. More transactions and heavier compute mean more SOL destroyed, while quieter periods mean less. If network activity grows over time, the burn grows with it, tying SOL's supply more closely to real demand for the network.
Staking rewards work exactly as they do today. The proposal does not touch Solana's inflation schedule, so the staking reward rate is unchanged, and priority fees and MEV tips continue to flow to validators and stakers as they do now. The effect stakers feel arrives through supply. Every burned SOL makes each remaining coin a slightly larger share of the network, so stakers earn the same rewards against less dilution. Unstaked holders benefit too, since burns reach every holder equally.
SIMD-0553 reprices Solana transactions around the resources they use and burns the resource fee in full. SOL would still inflate, just more slowly, and the burn grows as the network gets busier. Staking rewards are unchanged throughout. For institutional SOL holders, the proposal is best read as a supply change tied to network demand, and one worth building into supply models before the vote concludes.
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