Solana validators approve proposal to accelerate SOL disinflation
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Solana validators approved proposal SGP-0002 to double the network's annual disinflation rate from 15% to 30%, reducing future SOL issuance. The proposal passed with 67% support and 60.7% participation in the first binding governance vote. This change aims to reach Solana’s long-term inflation target of 1.5% in about 2.8 years, down from the previous 5.7 years.
Why it matters
The proposal reduces SOL issuance by an estimated 18.9 million tokens over six years, lowering dilution for SOL holders but also reducing staking rewards for validators and delegators. The source implies this could impact incentives within the network but does not elaborate further on broader market or policy effects.
Key context
This vote was part of Solana's first binding governance process, which also approved a Solana Constitution and rejected a separate resource and inclusion fee proposal. Key participants showed division, with Figment voting against and Helius and Jupiter supporting the measure. Kraken shifted from initial opposition to over 90% support by the vote’s end.
Key numbers and entities
The proposal received 67% support, 25.16% opposition, and 7.84% abstention with 60.7% voter participation. Figment staked 17.1 million SOL and voted against; Kraken's 8.9 million SOL voting stake ended over 90% in favor. Bitwise’s Solana ETF recently surpassed $1 billion in assets under management, with roughly $1.7 billion in cumulative US Solana ETF inflows.
What remains unclear
The source does not specify how the reduced staking rewards might affect validator participation or network security long-term. It also does not address potential impacts on SOL price or user adoption beyond noting related ETF inflows. Details on the rejected resource and inclusion fees proposal are absent.