SIMD-0547: Ecosystem Rallies Around Proposed $SOL Tokenomics Change

With $SOL succumbing to the bearish forces of the ongoing crypto winter, the asset’s tokenomics and inflation schedule have once again come under scrutiny.

Cavemanloverboy, a researcher at Temporal, a blockchain research and development firm, has proposed a potential solution $SOL’s inflationary tokenomics. Under SIMD-0547, Temporal suggests adding a variable base fee to transactions according to its complexity, with more compute-intensive tasks effectively burning more $SOL.

The proposed mechanism forecasts raising the daily burn to as high as 64,800 $SOL, outpacing issuance and rendering the asset deflationary.

What is SIMD-547?

Floated by Temporal’s cavemanloverboy, SIMD-547 is a proposal designed to improve $SOL tokenomics by introducing a resource-based base fee to all transactions. 

Currently, transaction costs are derived based on several variables, including CU (compute unit) consumption, data load, and write locks. Under SIMD-0547, Temporal suggests adding a base fee to every transaction which scales based on its complexity. This fee is burned and permanently removed from the supply.

Specifically, the proposal recommends charging and burning 0.1 lamport (a unit used to represent one billionth of a $SOL) per cost unit requested. Effectively, the more complex the transaction, the higher the burn rate.

 

Estimates show that SIMD-0547 implementation could boost the network’s daily burn rate from 648 $SOL per day to 10,800 $SOL per day. At SIMD-0547’s upper bounds, which propose raising the charge to 1 lamport per cost unit, $SOL’s daily burn rate could rise as high as 64,800 $SOL per day.

Based on current issuance, this would almost entirely offset $SOL emissions, and would certainly tip the scales in favor of net deflationary as issuance declines in line with the network’s existing schedule.

Critically, SIMD-0547 is expected to have a limited impact on non compute-intensive transactions, like market maker updates and validator voting costs. Keeping market maker costs low are critical to the ongoing success of Solana and the efficiency and execution performance of its onchain markets. Meanwhile, validator voting costs will be abolished alongside the launch of Alpenglow, which will almost certainly be implemented before SIMD-0547.

Ecosystem Leaders Lend Support for Proposal

Support for Temporal’s SIMD-0547 proposal has been overwhelmingly positive. Thought leaders from across the Solana ecosystem have weighed in to back the proposal, including Solana Labs co-founder Anatoly Yakovenko.

Opposition to the proposal has been negligible. However, one commentator suggested that despite SIMD-0547’s claim that market makers would be largely unaffected, the proposal could still cause a 5% increase to the oracle update costs paid by market makers. 

Given the hyper-competitive and thin window for market maker profitability on Solana, Soar’s former Head of BD Nicholas Wenzel expressed concern that the change could cut into market maker’s bottom line. At the upper bounds, this could translate to a 50% increase in operating costs.

A Wider Tokenomics Shift

SIMD-0547 comes amidst reignited debate over the state of $SOL tokenomics, which flared once again after Helius CEO Mert Mumtaz reminded network participants that they’d voted against reducing emissions during the polarizing SIMD-0228 proposal of Q1 2025.

Amidst lagging price action and outperformance by rival networks with deflationary mechanics, $SOL tokenomics going back under the microscope. 

SIMD-0441, a follow up proposal designed to double $SOL’s disinflation rate and effectively bring the network to its terminal rate sooner, is expected to be put to a vote in the coming months. 

The voting process is expected to be undertaken using a new framework, which is expected to enable stakers to vote on the proposal directly, rather than relying on validators to vote on their behalf.

Sentiment towards $SOL tokenomics have dramatically shifted since SIMD-0228, a vote held in March 2025. At the time, $SOL was priced at around $140, down from the memecoin-fuelled euphoria of January that pushed $SOL as high as $250. With price languishing anew, network participants are eager to make impactful changes to $SOL tokenomics as quickly as possible, driving protocol-level value to the network’s native asset.

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