Solana Validators Approve SGP-0002 to Double SOL Disinflation Rate

Solana validators have approved a proposal to double the network's annual disinflation rate from 15% to 30%, a move that will accelerate the timeline for reaching the blockchain's 1.5% terminal inflation target. Known as SGP-0002 or "Double Disinflation," the measure received 67% support in finalized voting results, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake, making this the first binding governance process in Solana's history.

Under the new schedule, Solana is projected to reach its 1.5% terminal inflation rate in approximately 2.8 years, compared with 5.7 years under the previous trajectory, according to Solana Compass. The change is expected to reduce SOL issuance by an estimated 18.9 million tokens over the next six years, easing dilution for holders but also lowering staking rewards for validators and delegators. The same governance vote also approved a proposed Solana Constitution while rejecting a separate measure on resource and inclusion fees.

The validator community was notably divided on SGP-0002. Figment, the largest voter with 17.1 million SOL staked, voted entirely against the proposal, while Helius and Jupiter overwhelmingly backed it. Kraken's position shifted mid-vote — the exchange initially cast its roughly 8.9 million SOL stake against the measure at 12:33 UTC, temporarily pushing support below the required threshold, before ultimately flipping to more than 90% support by the close of voting.

The governance outcome comes amid growing institutional interest in Solana-based investment products. Bitwise's spot Solana ETF recently became the first to surpass $1 billion in assets under management, according to Bloomberg ETF analyst Eric Balchunas. US-listed Solana ETFs have collectively attracted approximately $1.7 billion in cumulative net inflows since launch, with limited sustained outflows, signaling durable institutional demand despite SOL's weaker price performance earlier in the year.