Key Highlights
- The community has approved Marinade Finance’s proposal to burn 30% of its token supply
- MIP-14 proposal passes a threshold for Quorum with 36.77 million
On September 1, Marinade Finance introduced a proposal to burn 30% of its native token, MNDE’s total supply, which is around 300 million tokens.
This proposal has already passed a threshold for Quorum with 36.77 million. It means the protocol is set to send MNDE’s 30% supply to the burn address in 2 days.
Marinade Finance’s Latest Proposal: What Does It Mean for the Solana Community
Marinade Finance is a leading liquid staking protocol on the Solana blockchain. This decentralized finance platform allows users to stake SOL tokens and receive mSOL (marinated SOL) in return, which accrues staking rewards while remaining liquid for use in DeFi applications.
The protocol emphasizes decentralization, security, and capital efficiency, which delegates stakes to over 150 high-performing validators via an automated Stake Auction Marketplace (SAM).
As of the latest data, Marinade Finance has over $1.85 billion in total value locked (TVL) and is backed by the Solana Foundation and early investors like Serum. It is one of Solana’s original staking platforms, which focuses on non-custodial staking without smart contract risks and offering features like instant unstaking for a fee.
What is the Burn Proposal MIP-14
The proposal named “MIP-14: Burn 30% of MNDE Total Supply” is expected to execute in two days, on September 5, 2025. If everything goes well, 300 million MNDE tokens locked in the DAO treasury will be permanently released to a burn address. This burning event will reduce the total supply from 1 billion to 700 million.
The proposal came into the light from the community discussions in August. Initially, Marinade Finance’s community was planning to decide on a range of 5-50% burn. But after heavy forum debates, the community has decided to burn 30% supply.
In order to participate in this voting, token holders must lock their MNDE to vote. Also, some participation will also qualify for the Active Staking Rewards (ASR) program, which distributes 25 million MNDE in 2025 based on voting activity.
This proposal of Marinade Finance is part of a larger plan for tokenomics overhaul approved earlier this year via MIP-11, which redirects 100% of protocol fees to the DAO treasury. This ends team allocations.
Half of these fees, which is around $5 million annually, will fund monthly open-market buybacks of MNDE. It potentially removes another 49 million tokens yearly with a 4.9% deflation rate on the post-burn supply.
The latest burning proposal is expected to address the “overhang” from the large treasury. This will also improve the market cap-to-FDV ratio, which is currently around 55%.
Will Burn Mechanism Soar MNDE Token’s Price
This plan to burn 300 million MNDE tokens is designed to make the token more valuable and secure for its holders.
It creates more scarcity by permanently removing a huge number of tokens. With fewer tokens available, each remaining one becomes more valuable. This also prevents those tokens from being sold later, which would have diluted the value for everyone.
Furthermore, this burn mechanism works alongside a plan to regularly buy back tokens using the protocol’s own earnings. This creates ongoing buying pressure, which can help support the token’s price.
It makes it more rewarding for people to lock up their tokens long-term for governance rights (veMNDE). This encourages a dedicated community and ties the token’s success directly to the success of the entire protocol.
The project’s core value is strong, but its market price is currently low. This proposal aims to fix that mismatch and position MNDE for growth, especially as new regulations are expected to make the sector more attractive to large investors.
At the time of writing, MNDE is currently trading at around $0.1407 with an impressive market capitalization of $78.94 million, according to CoinMarketCap.