Solana validators approved SGP-0002, doubling the network's disinflation rate from 15% to 30% and cutting an estimated 18.9 million SOL from projected issuance over six years. The vote cleared by the thinnest possible margin as network fees and transaction counts hit records.
Vote clears by the narrowest margin
Solana's governance body passed SGP-0002, the Double Disinflation proposal, with just over 67% support against a 66.67% threshold to pass. The vote closed Friday, Aug. 28, with 176.29 million SOL in favor and 66.19 million opposed, and the outcome reportedly hinged on the Kraken validator switching its position before the deadline. Turnout reached 60.7% across 1,326 validators, the highest onchain governance participation in Solana's history.
The proposal doubles the annual disinflation rate from 15% to 30%, removing roughly 18.9 million SOL from projected issuance over six years. A separate proposal aimed at restructuring fees to increase onchain token burns failed to win supermajority support, so Solana's existing fee structure stays in place while the issuance change takes effect.
Network activity hits records
Solana's fee generation reached a seven-day average of nearly 9,200 SOL on Thursday, Aug. 27, over 80% higher than three months ago. Non-vote transactions also set a record high of 191 million on a seven-day basis, compared with just 88 million a year earlier. Jito validator tips averaged 2,073 SOL per day over the past week, up 26% week over week.
Staking rewards squeezed
Less new supply means less dilution for holders who don't stake, but the picture is more nuanced for validators. Staking rewards will fall from roughly 5.25% to 2.25% by year three, which squeezes validators who lean on inflation income rather than transaction fees, meaning many validators will likely become unprofitable within the next three years. Though this will likely impact smaller independent operators rather than the largest ones, the average user will likely notice nothing from the proposal in terms of network speed and fees.
Sources: The Block, Crypto Briefing
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