Demand for Solana ETFs continues to attract significant investment capital after Solana validators approved a key governance proposal designed to reduce future SOL minting.

The proposal, known as SGP-0002 or "Double Disinflation," received 67% support in the final vote, with 25.16% voting against and 7.84% abstaining. The vote was conducted under Solana's relatively new on-chain governance system, which allows validators to pass binding measures that directly change network monetary parameters — a shift from earlier, off-chain coordination among core developers.

Solana to Reach 1.5% Inflation Target Faster

With the adoption of SGP-0002, Solana's annual disinflation rate will increase from 15% to 30%, while the network's ultimate inflation target remains 1.5%. Under the new schedule, Solana is expected to reach its terminal inflation level in roughly 2.8 years, compared with approximately 5.7 years under the previous plan, according to Solana Compass.

The faster reduction in issuance will result in about 18.9 million fewer SOL created over the next six years. This will lower the number of newly issued SOL and help prevent dilution for existing holders. However, slower issuance may also reduce staking earnings for validators and delegators — a meaningful consideration on Solana, where a large share of circulating SOL is staked and staking rewards are a core part of the network's security model, since issuance incentivizes validators to back the chain.

Major Solana Participants Split Over the Proposal

Solana stakeholders took differing positions during the governance process. Figment, which held approximately 17.1 million SOL and was the largest voting participant in the finalized governance data, voted against SGP-0002. In contrast, Helius and Jupiter strongly supported the proposal.

Kraken also changed its voting stance. The US-based exchange initially opposed SGP-0002 with its vote at 12:33 UTC, but by the end of the voting period, well over 90% of Kraken's 8.9 million SOL voting power was in favor of the proposal.

It was the first time such a shift had occurred under Solana's new binding governance system. In addition, validators backed the Solana Constitution rather than the fees proposal.

Solana ETF Assets Reach $1 Billion

The governance decision comes alongside continued strength for Solana ETFs in the US market, despite SOL's weak price performance earlier in the year. US-listed Solana ETFs began trading in 2025 after regulatory clearance, and the products have since become one of the main vehicles through which institutional investors gain exposure to SOL.

The Bitwise Solana ETF has crossed the $1 billion mark in assets, becoming the first Solana ETF to do so, according to data from Bloomberg ETF analyst Eric Balchunas.

https://x.com/EricBalchunas/status/2093349072069656796

According to Balchunas, Solana ETF offerings on US exchanges have accumulated roughly $1.7 billion in cumulative inflows since inception, with very few instances of sustained outflows.

Ongoing demand in the Solana ETF market represents an important factor in Solana's broader outlook, while the accelerated decline in SOL issuance is set to affect the token's supply in the coming years. With both lower issuance and institutional investment through products such as ETFs, Solana is entering a critical phase. Watch next for how the disinflation schedule is implemented in upcoming network upgrades and whether ETF inflows remain durable as the reduced issuance schedule takes effect.

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