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Solana Validators Approve Proposal To Accelerate SOL Disinflation

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Solana Validators Approve Proposal To Accelerate SOL Disinflation
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Solana validators have approved a proposal to double the network’s annual disinflation rate, reducing future SOL issuance. According to finalized voting results, the proposal received 67% support, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake.

The proposal, known as SGP-0002 or Double Disinflation, increases Solana’s annual disinflation rate from 15% to 30%, while leaving the network’s long-term inflation target of 1.5% unchanged. Under the new 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 schedule, Solana Compass reported.

The change would result in an estimated 18.9 million fewer SOLs being issued over the next six years, reducing dilution for SOL holders but also lowering staking rewards for validators and delegators.

Some of the largest participants were divided over SGP-0002. Figment, the largest voter shown in finalized governance data with 17.1 million SOL staked, voted entirely against the measure, while Helius and Jupiter overwhelmingly backed it.

Kraken Votes No on Both Supply Proposals, Pushing SGP-0002 Below the Threshold

Source: Solanacompass.com

Kraken was among those whose position shifted during the vote. The US-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold. By the end of voting, more than 90% of its roughly 8.9 million SOL voting stake backed the proposal.

Source: governance.solana.com

The governance vote comes as US-listed Solana investment products continue to attract 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 reach the milestone, according to an X post from Bloomberg ETF analyst Eric Balchunas on Friday. US Solana ETFs have attracted roughly $1.7 billion in cumulative net inflows, with little sustained outflow since their launch, Balchunas said Friday.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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