Solana validators have narrowly approved a proposal to accelerate the reduction of new SOL token issuance, with support barely crossing the required threshold in the final moments of the vote.
Double disinflation proposal passes with slim margin
SGP-0002, also referred to as Double Disinflation, secured 67% of votes, just surpassing the minimum threshold of 66.667%. Out of 1,326 eligible validators, turnout stood at 60.7%, well above the required quorum.
According to the official data, approximately 25% of validators opposed the measure, while 7.84% abstained from voting. The proposal increases Solana’s annual disinflation rate from 15% to 30%, maintaining the long-term inflation target of 1.5%. This adjustment will allow the network to reach its target inflation rate in about 2.8 years instead of the previous 5.7 years, shifting the goalpost to early 2029 instead of 2032.
With the new trajectory, the projected total SOL issuance will decrease by around 18.9 million tokens over the next six years.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPL| Parameter | Previous Setting | New Setting |
|---|---|---|
| Annual disinflation rate | 15% | 30% |
| Time to inflation target | 5.7 years (2032) | 2.8 years (2029) |
| Projected issuance reduction (6 years) | N/A | 18.9 million SOL |
Mini dictionary: Disinflation, in this context, refers to a reduction in the rate at which new tokens are issued, as opposed to a decrease in the inflation rate itself. It gradually lessens the dilution for existing holders while tightening staking rewards for validators securing the network.
Key validator votes influenced the outcome
The voting process revealed a stark division among large stakeholders. While lower token issuance benefits existing holders by reducing dilution, it results in slimmer staking rewards for validators responsible for network security. This dynamic contributed to the split among participants.
Several large validator operators shifted their positions during the vote’s closing hours. Kraken, representing about 8.9 million SOL, temporarily moved against the proposal, dropping the support below the approval threshold. Later, Kraken restored approximately 8.1 million SOL in support, enabling the measure to clear the bar.
Galaxy Digital, holding roughly 1.7% of the total voting weight, changed its stance from near-total abstention to majority approval. Helius cast 16.05 million SOL in favor with a 99.5% yes rate. Figment and Everstake, holding 17.07 million and 7.96 million SOL respectively, voted against.
SGP-0002’s approval resulted from significant late shifts in voting, particularly by major operators such as Kraken and Galaxy, which tipped the proposal over the line as the deadline approached.
Other governance measures and next steps
Despite the passage of SGP-0002, the proposal serves as a governance directive and does not trigger an immediate protocol change. The technical implementation, listed as SIMD-0550, still requires development by client teams and must be activated on the Solana blockchain via a future update.
The same ballot included two additional proposals. SGP-0001, aimed at formalizing the governance framework, passed comfortably. SGP-0003, which would have introduced resource-based fee pricing and committed to burning about 7,500 SOL per day, failed with only 53.9% support.
Lowering new SOL issuance will reach the intended inflation floor in 2029 rather than 2032, while additional reforms to fee structures and token burns remain on hold after SGP-0003 did not pass.
