Solana validators are voting on the network's first onchain governance proposals. A plan to slow new SOL issuance has 68.77% support, narrowly above the two-thirds threshold, while a separate plan to sharply increase fee burns trails at 62.72%. Both measures aim to slow growth in SOL's total supply.
Solana operators are voting on two ways to shrink the future supply of SOL, the network's native token. One proposal to create fewer new tokens is narrowly passing. Another, which would destroy more SOL from transaction fees, is falling short.
The network mints new SOL every day to reward the operators who secure it, so both proposals would slow growth of the total supply. That matters to holders because fewer new tokens mean less dilution of the ones they already own. These votes are part of Solana's first onchain governance system, which gives staking operators a formal vote on major network changes.
Fee-burn proposal lags behind the threshold
One proposal would charge transactions based on the computing work they require and eliminate that portion of the fee, lifting daily burns from roughly 650 SOL to between 7,500 and 9,000 SOL. At prices this week, the upper end is worth about $800,000 a day.
Each proposal needs one-third of network stake to participate and two-thirds of participating stake in favor to pass. Abstentions count toward participation but not toward approval. All three proposals have cleared quorum as of Friday, according to the governance page.
Disinflation plan narrowly ahead
Solana Governance Proposal (SGP)-0001, the constitution setting voting rules, is passing easily with 95.35% support and just 0.22% opposed. SGP-0002 would cut the rate of new SOL issuance by 30% each year, down from 15%, and has 68.77% support with 47.72% participation. That would bring new token creation down to its 1.5% annual minimum around 2029 instead of 2032.
SGP-0003, the fee-burn measure, has 62.72% support, with 16.52% opposed and 20.75% abstaining. Participation stands at 42.51%, leaving it below the two-thirds support it needs. Its abstention share runs considerably higher than the other two votes, and because abstentions still count as participating stake, they make the threshold harder to reach.
Solana Company, the Nasdaq-listed SOL treasury firm trading as HSDT, said on Aug. 21 it backed the constitution but opposed the other two supply proposals, arguing institutions need predictable economic rules for multi-year planning. None of the three votes changes the network by itself — an approved SGP is a mandate to proceed, and the technical changes still need to be written and implemented separately.
Source: CoinDesk
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