Solana Network Validators Pass Measure to Double Rate of SOL Disinflation
Validators have endorsed a measure that increases Solana's disinflation rate annually from 15% to 30%, cutting down on SOL token issuance going forward while maintaining the network's existing long-term inflation goal.
A proposal to double the annual disinflation rate on the Solana network has been approved by validators, which will result in reduced SOL issuance moving forward.
Based on the final voting tallies, the measure garnered 67% approval, while 25.16% of participants cast votes in opposition and 7.84% chose to abstain. Participation levels among eligible stake holders reached 60.7% overall.
The measure, designated as SGP-0002 or Double Disinflation, raises Solana's yearly disinflation rate from 15% to 30%, though it maintains the network's existing long-term inflation objective of 1.5% without modification.
According to Solana Compass reporting, the updated timeline projects that Solana will achieve its 1.5% terminal inflation rate in approximately 2.8 years, a significant reduction from the roughly 5.7 years that would have been required under the former schedule. Implementation of this change is projected to result in approximately 18.9 million fewer SOL tokens being issued throughout the next six years, which will decrease dilution experienced by SOL holders while simultaneously reducing staking rewards available to validators and delegators.
This voting exercise represented the inaugural binding governance process on Solana, which simultaneously approved a proposed Solana Constitution while voting down a distinct proposal concerning resource and inclusion fees.
Major participants demonstrated divergent positions on SGP-0002. Figment, representing the largest voter according to finalized governance records with 17.1 million SOL staked, cast its entire vote in opposition to the measure, whereas Helius and Jupiter provided overwhelming support for the proposal.
Kraken numbered among those entities that altered their stance throughout the voting period. The cryptocurrency exchange based in the US initially registered a vote against SGP-0002 at 12:33 UTC, briefly driving support levels beneath the required threshold. When voting concluded, over 90% of its approximately 8.9 million SOL voting stake had shifted to supporting the proposal.
Solana ETF assets cross $1 billion
This governance decision arrives as Solana investment products listed in the United States continue drawing investor capital notwithstanding SOL's relatively weaker performance during the earlier part of this year.
The Solana ETF from Bitwise has recently crossed the $1 billion threshold in assets, marking it as the first Solana ETF to achieve this milestone, based on an X post published Friday by Bloomberg ETF analyst Eric Balchunas.
Cumulative net inflows into US Solana ETFs have reached approximately $1.7 billion, with minimal sustained outflow activity recorded since these products launched, according to Balchunas's Friday statement.
