Solana Validators Approve Proposal to Accelerate SOL Disinflation

Solana validators have approved a proposal to double the network's annual disinflation rate, reducing the future supply of $SOL.

According to the finalized voting results, the proposal received 67% support: 25.16% voted against, and 7.84% abstained. In total, participation reached 60.7% of the eligible staking volume.

The proposal, known as SGP-0002 or Double Disinflation, increases Solana's annual disinflation rate from 15% to 30%, while the network's long-term target inflation rate of 1.5% remains unchanged.

Under the new schedule, Solana is expected to reach its final 1.5% inflation rate in about 2.8 years versus about 5.7 years under the old schedule, Solana Compass reported. As a result, approximately 18.9 million fewer $SOL could be issued over the next six years, reducing dilution for $SOL holders but also decreasing staking rewards for validators and delegators.

SGP-0002 passed with 67% support and 60.7% participation. Source: Solana Governance

The vote was part of Solana's first mandatory governance process, which also saw the proposed Solana Constitution approved and a separate proposal on resource and inclusion fees rejected.

Some of the largest participants were split on SGP-0002. Figment, the largest voting participant listed in the finalized governance data with 17.1 million $SOL staked, voted entirely against the measure, whereas Helius and Jupiter overwhelmingly supported it.

Kraken was one of the entities that changed its position during the vote. The U.S.-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold. By the vote's conclusion, over 90% of its roughly 8.9 million $SOL of voting stake supported the proposal.

The largest voting participants were split on SGP-0002. Source: Solana Governance

Related: Solana Transactions Hit Record 4.2B as $SOL Rallies 40%

Solana ETF Assets Top $1 Billion

The governance vote took place as investor capital continues to flow into U.S.-listed Solana investment products, despite $SOL's weaker performance earlier this year.

According to a Friday post on X by Bloomberg ETF analyst Eric Balchunas, Bitwise's Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach that milestone.

Balchunas said on Friday that the aggregate net inflow into U.S. Solana ETFs has been roughly $1.7 billion, with sustained outflows being minimal since their launch.

Source: Eric Balchunas

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