Solana's proposal to double its annual disinflation rate has cleared a governance vote with 67% support, placing the network on course to reduce projected SOL issuance by 18.9 million tokens over six years.
Key Takeaways
67% of participating SOL backed the faster disinflation schedule, narrowly exceeding the two-thirds requirement
60.7% of eligible stake participated, comfortably meeting the one-third quorum
SOL inflation would decline twice as fast but retain its existing 1.5% minimum rate
A separate resource-fee proposal failed after receiving 53.9% support
Solana Inflation Proposal Narrowly Clears Required Vote
Solana's official governance dashboard showed SGP-0002, called Double Disinflation, finished voting with 176.29 million SOL in favor, representing 67% of the participating stake. Another 66.19 million SOL, or 25.16%, opposed the proposal, while 20.63 million SOL, or 7.84%, abstained. Voting participation reached 60.7%, representing 433.49 million SOL and exceeding the one-third quorum required.
Under Solana's governance process, a proposal passes when at least one-third of network stake participates and two-thirds of participating stake votes in favor. Abstentions count toward both participation and the total used to calculate support, leaving SGP-0002 only slightly above the required 66.67%. The result provides a stake-weighted mandate but does not immediately reduce SOL issuance, as a Solana Improvement Document specifies the technical changes. This connects to the broader Solana governance and ecosystem developments covered in Solana proposals that could cut $1.5B in SOL issuance and Solana activity hitting record highs.
Faster Disinflation Requires Technical Rollout
SIMD-0550, written by Helius contributors Lostin and 0xIchigo, would increase the rate at which SOL inflation declines each year from 15% to 30%. Rather than cutting the current inflation rate at once, the proposal would make inflation fall twice as fast from its level when the change becomes active. Solana would reach its terminal inflation rate of 1.5% in about 2.8 years, compared with 5.7 years under the current schedule. The authors estimate the change would remove 18.9 million SOL from projected issuance over six years, or about 2.6% of the supply expected under the present schedule.
Before mainnet activation, validator clients must add and support a feature gate called double_disinflation_rate. The feature would activate at an epoch boundary, with the faster schedule applying to rewards from the following epoch. Developers designed the change to keep issuance continuous at activation, preventing an immediate drop or retroactive changes to already-earned rewards.
Resource-Fee Proposal Fails to Reach Two-Thirds
Alongside SGP-0002, Solana voters rejected SGP-0003, the Resource and Inclusion Fee proposal, despite 61.14% participation. The final tally showed 53.9% support, falling almost 13 percentage points below the threshold. SGP-0003 asked validators to support replacing Solana's flat base-fee model with a 2,500-lamport inclusion fee and a separate resource-based charge. The proposal estimated daily burns of 1,500 to 9,000 SOL depending on the stage, compared with the current 648 SOL per day. This governance process reflects the network evolution tracked in DeFi Development's Solana network data dashboard.
US-Listed Solana Products Face Lower Staking Income
Solana Company, a Nasdaq-listed digital asset treasury firm trading under HSDT, opposed both proposals, saying institutions rely on stable staking yields and predictable transaction costs. The Bitwise Solana Staking ETF held 8.18 million SOL valued at about $622 million as of Aug. 9, with 99% of assets staked and a 5.84% net staking reward rate. Network use has climbed while Solana considers the lower issuance path, with July transactions reaching a record 4.2 billion, rising 13.5% from June.