Solana has officially rolled out its on-chain governance system, allowing network decisions to be made and recorded transparently on the blockchain. The new framework, known as Solana Governance Proposals (SGP), gives both validators and token holders voting rights proportional to their staked SOL. This move aims to enhance transparency and stakeholder engagement in guiding the network’s direction.
How the new system works
Under the new rules, a governance proposal can be initiated only if the relevant validator has at least 100,000 SOL staked, a figure currently worth around $7.7 million. Instead of complex technical documents, proposals are drafted as straightforward questions, with voting focused on whether the network should take a specific action.
Proposals do not go to a full vote immediately. They first require backing from at least 15% of active stake. Once this threshold is met, a fixed timetable is followed, tied to Solana’s “epoch” periods, each lasting approximately two days. For a proposal to pass, at least two-thirds of votes cast (excluding abstentions) must be in favor. There is no minimum participation required for votes to be valid.
To be considered for a vote, a proposal must first secure the support of 15% of active stake. Final approval requires at least two-thirds of participant votes in favor.
Voting outcomes are recorded directly on the blockchain. The system uses Merkle proof, a cryptographic technique that lets anyone verify if a specific vote is properly counted, without recalculating the entire set of results. This ensures both security and transparency.
Mini glossary: Merkle proof is a cryptographic method that quickly and securely verifies whether a specific record is part of a data set. It is widely used in blockchains to ensure the integrity of votes, transactions, and data.
Separation of technical and governance proposals
The new governance framework separates two processes that had previously run in parallel on Solana. Community and validator votes within the SGP process now address the high-level question of whether a proposed step should be taken. Detailed technical work is handled through the older Solana Improvement Document (SIMD) process.
This distinction channels political, direction-setting decisions through governance votes while assigning engineering and implementation to the SIMD process. When an SGP is approved, it signals community intent and commitment; the technical execution then unfolds through one or more SIMD documents.
The SGP system lets the community decide “Should we do this?” while the practical technical details remain within the SIMD framework.
Delegators gain stronger voice
A key feature of the new system is that it gives greater authority to delegators—those who stake their tokens with validators. Users who do not operate their own nodes but stake SOL for rewards can now override their validator’s vote or vote directly with their own stake if the validator abstains.
Solana Foundation calls this policy “staker sovereignty.” The Foundation, a non-profit supporting the Solana ecosystem, says this approach is designed to keep voting power in the hands of token holders rather than concentrating it solely among validators.
Renewed market interest
The introduction of the on-chain governance system coincided with a recent recovery in the price of SOL. According to CoinDesk, the token rose roughly 16% over the past week to around $78. This performance placed Solana among the few major assets to gain value during a period of weakness in the wider crypto market.
Key parameters of the new system include a 100,000 SOL threshold for proposals, 15% active stake backing for initial support, two-thirds approval needed from cast votes (excluding abstentions), and an epoch period of about two days for processing. Over the past week, SOL has climbed 16% and currently trades near $78.
