Solana Developer Proposes Overhaul of SOL Burn Mechanism
- Insufficient Burn Mechanism: The proposal indicates that the current flat fee of 2,500 lamports results in only 648 SOL burned daily at a throughput of 3,000 transactions per second, which is negligible compared to the daily issuance of approximately 60,000 SOL, highlighting the current mechanism's ineffectiveness in offsetting inflation.
- Resource-Based Fee System: The proposal rules out a simple increase in the base fee and instead suggests a resource-based fee model where fees are calculated based on the computational resources consumed, with all collected fees being burned, aiming to enhance the burn rate and increase SOL's scarcity.
- Impact on Holders: If SIP-547 is implemented, SOL could become a deflationary asset under high network usage, addressing long-standing concerns among holders regarding high inflation and low burn rates, thereby potentially boosting market confidence and long-term value.
- Importance of Community Consensus: The proposal is still in its early stages and requires community consensus before any code changes can be made, with the Solana community expected to debate it in the coming weeks, which could have significant implications for validators, developers, and token holders alike.
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Technical Analysis for SOL
Technical Sentiment Analysis for Solana (SOL). As of , Solana (SOL) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 3 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for SOL stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, SOL is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Solana (SOL) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 50.721 | 56.955 | 63.621 | 69.855 | 76.521 | 82.755 | 89.421 |
| Fibonacci | 56.955 | 61.883 | 64.928 | 69.855 | 74.783 | 77.828 | 82.755 |
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