Solana validators have approved a proposal to accelerate the network’s long-term reduction in SOL issuance, bringing the blockchain closer to its 1.5% inflation floor several years earlier than previously expected.
SGP-0002 passed with 67% of participating stake, narrowly exceeding the 66.67% approval threshold. Support represented 176.29 million SOL, while 66.19 million SOL voted against the measure.
Inflation floor could arrive in 2029
The approved change implements SIMD 550, developed by engineers at Helius. It increases Solana’s annual disinflation rate from 15% to 30%. Under the revised schedule, the network is expected to reach its 1.5% inflation floor in 2029 rather than 2032.
The faster reduction is projected to result in approximately 18.9 million fewer SOL being issued over the next six years. While lower issuance could reduce dilution for holders, it may also lead to lower staking rewards. 21Shares estimates that Solana’s staking yield could decline from about 5.25% currently to roughly 2.25% within three years.
Kraken changed position near the deadline
The vote was conducted through Solana’s first binding governance process using the Solana Governance Proposal system. Kraken initially opposed the disinflation proposal but withdrew its vote shortly before the voting period ended. Galaxy also shifted from abstaining to supporting the measure.
Validators separately approved SGP-0001, which formalizes Solana’s governance framework, with 86% support. A third measure, SGP-0003, failed to secure the required two-thirds majority. That proposal would have introduced a resource fee linked to transaction compute usage and significantly increased the amount of SOL burned each day.
SOL entered the governance vote after gaining approximately 44% during August. The token later weakened after SGP-0003 failed, with Coinbase data showing SOL closed August 28 at $105, down 3.83% from its daily open.
