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Solana validators approve disinflation proposal in first major governance vote

Solana has concluded its first major on-chain governance cycle, resulting in a split outcome for three key proposals. The most significant result was the narrow approval of SGP-0002, the “Double Disinflation” proposal. This measure passed with 67% support, narrowly exceeding the required two-thirds threshold after the validator Kraken flipped its vote from against to for in the final moments. The approved proposal will double the network’s annual disinflation rate from 15% to 30%, accelerating the timeline to reach a 1.5% terminal inflation floor to 2029 instead of 2032. This change is projected to reduce SOL issuance by approximately 18.9 million tokens over the next six years.

In contrast, the SGP-0003 proposal, which aimed to restructure transaction fees to increase daily SOL burns from roughly 600-800 tokens to 7,500-9,000 tokens, failed to pass. It received 62.72% support, falling short of the two-thirds requirement, partly due to a high abstention rate. Additionally, the SGP-0001 proposal, establishing the Solana Constitution, passed with overwhelming support of over 95%.

The voting process highlighted tensions between different stakeholders. While many investors viewed the disinflation as a bullish supply-side move, Solana Company (HSDT) opposed the economic changes, arguing that institutions require more predictable economic structures for long-term planning. Meanwhile, co-founder Anatoly Yakovenko expressed concerns that combining multiple complex decisions into a single proposal could deter voter participation.

Entities

21Shares · Anatoly Yakovenko · Charles Schwab · Helius · Kraken · Solana · Solana Company

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