Solana Validators Approve Faster Disinflation as California Moves to Ban Officials' Memecoins

Solana validators have approved a sweeping change to the network's issuance schedule, doubling its annual disinflation rate from 15% to 30% under proposal SGP-0002. The vote passed with 67% support, while 25.16% opposed and 7.84% abstained, with nearly 61% of eligible stake participating. The adjustment preserves Solana's long-term inflation target of 1.5% but accelerates its arrival from 5.7 years to roughly 2.8 years. According to the proposal's estimates, approximately 18.9 million fewer SOL tokens could enter circulation over the next six years, easing dilution for holders while trimming staking rewards for validators and delegators. Major staking operators were split: Figment opposed the measure, while Helius and Jupiter supported it. Kraken initially voted against the proposal before more than 90% of its voting stake ultimately backed it. The decision follows rising institutional interest, with Bitwise's Solana ETF recently surpassing $1 billion in assets under management.

California lawmakers took a direct aim at politically-linked memecoins, passing Assembly Bill 2409 with unanimous support from both chambers. The state Senate voted 40-0 on Wednesday to approve the measure, followed by a 78-0 concurrence vote in the Assembly, according to Legiscan data. The bill has entered the enrolled stage and now awaits the governor's signature. Under its provisions, digital asset service providers would be prohibited from offering California residents any memecoins issued on or after January 1, 2027, that are created by or in partnership with federal public officials or state and local public officers. The legislation defines memecoins as digital assets whose value derives primarily from public interest, speculation, or community engagement, and was designed to close loopholes around "pay-to-play" arrangements.

The California action comes amid heavy losses for investors in the Official Trump (TRUMP) memecoin, who sit on an estimated $3.2 billion in unrealized losses, according to a Thursday report from nonprofit consumer advocacy group Public Citizen. The TRUMP token ranks among the most prominent examples of a politically-branded memecoin, and public officials' involvement in such assets has drawn increasing regulatory scrutiny across multiple jurisdictions.

Separately, a group linked to an Abu Dhabi royal reportedly backed a 49% stake in the holding company behind World Liberty Financial's proposed US trust bank, according to the article. The investment underscores deepening Gulf-state capital flows into crypto-aligned financial infrastructure in the United States, even as domestic regulators tighten oversight on politically-connected token launches.