Solana validators approve doubling SOL disinflation rate to 30%

Solana validators have approved a governance proposal that doubles the network's annual disinflation rate from 15% to 30%, tightening SOL token issuance while leaving the long-term terminal inflation target of 1.5% unchanged. According to finalized voting results, the measure known as SGP-0002 or "Double Disinflation" passed with 67% support, 25.16% opposition, and 7.84% abstentions, with 60.7% of eligible stake participating in Solana's first binding governance vote.

Under the accelerated schedule, Solana is projected to reach its 1.5% terminal inflation rate in roughly 2.8 years, compared with approximately 5.7 years under the previous trajectory. The change is expected to reduce SOL issuance by about 18.9 million tokens over the next six years, a shift that cuts dilution for holders but also lowers staking rewards for validators and delegators. The vote also approved a proposed Solana Constitution while rejecting a separate proposal on resource and inclusion fees.

Major stakeholders were divided. Figment, the largest voter with 17.1 million SOL staked, voted entirely against the measure, while Helius and Jupiter overwhelmingly supported it. Kraken initially voted against SGP-0002, briefly pushing support below the required threshold, but ultimately more than 90% of its roughly 8.9 million SOL voting stake backed the proposal by the end of the voting window.

The governance milestone coincides with surging institutional demand for Solana investment products. Bitwise's Solana ETF recently became the first to surpass $1 billion in assets, according to Bloomberg ETF analyst Eric Balchunas, while US-listed Solana ETFs have attracted approximately $1.7 billion in cumulative net inflows since launch with little sustained outflow.