The Short Answer
A "good" amount of LP (Priority Fees) burned is one that is sustained and growing, indicating a healthy, heavily used network. The absolute number is less important than the trend and what it represents.
As of late 2023 and into 2024, burning 5,000 to 20,000 SOL per month has been considered a very strong and positive sign of network activity. During peak meme coin craze periods (like March 2024), this number skyrocketed to over 60,000 SOL in a single month, which was exceptional.
Understanding the 100% Priority Fee Burn
First, let's clarify what is being burned.
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What are Priority Fees? On Solana, users can add a small tip (a "priority fee") to their transaction to get it processed faster by validators during times of network congestion. This is separate from the base transaction fee.
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What is Burned? In November 2023, Solana implemented a change where 100% of these priority fees are now burned (destroyed)
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What is NOT Burned? The base transaction fee (which is very small, typically 0.000005 SOL or 5000 lamports) still goes to the validators as compensation for their work securing the network.
The purpose of this burn is to make SOL more deflationary. By burning a portion of the SOL spent on fees, the overall supply of SOL decreases, which, all else being equal, is beneficial for long-term token holders.
What Makes an Amount "Good"? Key Metrics to Watch
Instead of a fixed number, judge the burn by these factors:
1. The Trend is Your Friend
A consistently high or growing burn rate is the best indicator. It shows sustained demand for block space on Solana. A spike might be due to a temporary event (like a major NFT mint), but a steady high floor indicates robust, everyday usage from DeFi, NFTs, and consumer applications.
2. Burn as a Proxy for Network Activity
The burn amount is a direct consequence of network demand. A high burn means:
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High Volume: Lots of transactions are happening.
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High Competition: Users are willing to pay extra to get their transactions through quickly, which happens during periods of high demand (e.g., trading frenzies, popular NFT drops).
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Economic Value: Real economic activity is taking place on-chain, with users valuing speed enough to pay for it.
3. The Inflation vs. Burn Ratio (The Net Issuance)
This is the most important macroeconomic metric.
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SOL has a built-in inflation rate (currently around 5.5%, decreasing annually until it stabilizes at 1.5%).
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The burn rate counteracts this inflation.
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"Good" is when the burn rate is high enough to offset a significant portion of, or even exceed, the new SOL issued as staking rewards.
When the amount burned is greater than the new inflation, the network becomes deflationary for that period. This is a very bullish signal for token holders.
Example from March 2024: The network saw over 60,000 SOL burned in a month, significantly outpacing inflation and making SOL net deflationary during that meme coin frenzy.
Current Data and Context
You can track this data on sites like:
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Solana Compass: Has excellent charts showing burned fees vs. validator rewards.
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Step Finance: Dashboard for Solana economic data.
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Solscan: Look up specific transactions and see the burned fee component.
As of mid-2024, the burn has normalized from the March 2024 peaks but remains at healthy levels, consistently in the thousands of SOL per week, demonstrating that high activity is the new normal for Solana.
Conclusion
So, what is a good amount?
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For a Token Holder: A good amount is one that consistently reduces the net new supply of SOL (high burn/inflation ratio), supporting the asset's value.
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For a Network User/Developer: A good amount indicates a vibrant, active ecosystem where applications are being used heavily, even if it means occasionally paying priority fees.
In summary, don't fixate on a single magic number. Look for a sustained, high level of burned fees (e.g., thousands of SOL per week) as a sign of a healthy and economically sound Solana network. The fact that the mechanism exists and is actively being used is a positive development in itself.
