The approved proposal doubles Solana’s annual disinflation rate from 15% to 30%, cutting future SOL issuance while keeping its long-term inflation target unchanged.
Solana validators have approved a proposal that doubles the network’s annual disinflation rate, which will reduce future SOL issuance.
According to the finalized voting results, the proposal secured 67% support, while 25.16% voted against it and 7.84% abstained. Overall participation reached 60.7% of the eligible stake.
The proposal, identified as SGP-0002 or Double Disinflation, raises Solana’s annual disinflation rate from 15% to 30% while keeping the network’s long-term inflation target at 1.5%.
Under the revised schedule, Solana is expected to reach its 1.5% terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous timeline, according to Solana Compass. The change is projected to result in around 18.9 million fewer SOL being issued over the next six years, reducing dilution for SOL holders while also lowering staking rewards for validators and delegators.
The vote formed part of Solana’s first binding governance process, which also approved a proposed Solana Constitution while rejecting a separate proposal concerning resource and inclusion fees.
Some of Solana’s largest participants were split over SGP-0002. Figment, the biggest voter listed in the finalized governance data with 17.1 million SOL staked, voted fully against the measure, while Helius and Jupiter gave it overwhelming support.
Kraken was among the participants whose position changed during the vote. The US-based crypto exchange initially opposed SGP-0002 at 12:33 UTC, briefly pushing support below the required threshold. By the close of voting, more than 90% of its roughly 8.9 million SOL voting stake supported the proposal.
Solana ETF Assets Surpass $1 Billion
The governance vote comes as US-listed Solana investment products continue attracting investor capital despite SOL’s weaker performance earlier this year.
Bitwise’s Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to hit the milestone, according to an X post by Bloomberg ETF analyst Eric Balchunas on Friday.
US Solana ETFs have drawn roughly $1.7 billion in cumulative net inflows, with sustained outflows remaining limited since their launch, Bloomberg analyst Eric Balchunas said Friday.
