Solana Begins Multi-Stage Plan to Slash Account Storage Deposits by 90%

Lowering the cost to store data on Solana

Solana has begun a five-stage process to reduce the amount of cryptocurrency users must lock up to keep their accounts open. The first step went live on Sept. 3, lowering the minimum deposit required for new accounts by about 9%.

The long-term goal of this initiative is a 90% cut in the total capital tied up in account storage. If all stages are completed, the network would need a tenfold increase in usage to hold the same amount of Solana tokens as before the changes began.

Currently, only the initial reduction is active. The final target of a 90% cut remains conditional and is expected to arrive with the upcoming Agave 4.4 software update in November.

Key figures in the rent reduction

• The cost parameter dropped from 6,960 to 6,333 lamports per byte on Sept. 3.
• The final target set by the proposal is 696 lamports per byte.
• A standard token account is calculated based on 165 bytes of data plus 128 bytes of overhead.
• For one million token accounts, the reserve requirement falls from roughly 2,039 SOL to 1,855 SOL in the first phase.
• The final phase would lower that requirement to approximately 204 SOL.

How the deposit refund works

The system requires account owners to hold a minimum balance of SOL, the native cryptocurrency, to pay for the storage space their data occupies. This is not an ongoing fee but a deposit that is returned when an account is closed.

With the lower rate, many existing accounts now hold more SOL than the new minimum requires. Owners can reclaim the excess using a specific command. This allows them to free up capital without closing the account or losing any tokens held within it.

A significant detail involves who controls this surplus. If a business or payment provider paid for a customer's account, they do not automatically own the right to withdraw the excess funds. The account owner retains control over their own deposit, regardless of who initially funded it.

What is still unclear

While the mechanics for reclamation are defined, it remains unknown how much surplus SOL will actually be withdrawn by users. The guidelines do not provide data on past withdrawals or how this released capital might be sold.

Additionally, the full 90% cut depends on future governance reviews of state growth. The timeline for these subsequent stages relies on the deployment of the Agave 4.4 upgrade.

Why this matters for the network

This change directly affects the economics of building on Solana. Lower storage costs mean businesses and developers need less capital to launch new accounts for their users.

However, because this stored SOL is removed from circulation when reclaimed, the reduction weakens one of the demand drivers for the token. While adoption could grow, the price impact remains uncertain since usage and market value are separate measures.

Sources

• CryptoSlate