Solana has opened an on-chain vote on SGP-0002, placing a proposed change to token issuance before validators and stakers. The proposal would double the network's annual disinflation rate from 15% to 30%, accelerating how quickly new SOL issuance declines while leaving the 1.5% long-term inflation floor unchanged.

Under the model presented with the proposal, the change would cut projected six-year SOL supply by 18.9 million tokens, about 2.6% of projected supply and worth roughly $1.81 billion at the Aug. 23 price of $95.70 per SOL. Modeled staking yields would fall from 5.84% today to 4.34% after one year and 2.25% after three years. A 30% disinflation rate could bring Solana to its 1.5% inflation floor in 2029 rather than around 2032. SGP-0002 requires one-third stake participation and two-thirds support, making it an early test of the network's governance process.

LATEST: Solana's proposal to double its disinflation rate from 15% to 30% is now live for governance voting. If approved, $SOL inflation would fall twice as fast, meaning fewer new tokens entering circulation and less dilution for holders. pic.twitter.com/pPTt5iXQ5p

— CryptosRus (@CryptosR_Us), August 23, 2026 (X post)

18.9M SOL issuance cut goes before stakers

The vote is running under the network's new stake-weighted governance framework, in which validators and native stakers signal support or opposition. Delegators can override their validator's choice, giving stakers a direct role in the outcome. The decision therefore combines monetary policy with an early governance test.

SGP-0002 is linked to SIMD-0550, authored by Lostin and 0xIchigo of Helius, a Solana infrastructure and research firm. Their June model placed the inflation rate at 3.82% under the existing schedule, which has been in place since the network launched in 2020: annual inflation began at 8% and is programmed to decline 15% per year until reaching the 1.5% floor, with no hard cap on total supply. At the current 15% annual disinflation rate, inflation would fall to about 3.24% after one year and reach the 1.5% floor around the first half of 2032.

The proposed 30% schedule would move faster. Inflation would decline to roughly 2.86% after one year and reach the same floor around early 2029. That acceleration would reduce cumulative issuance: the model projects total supply of 708.54 million SOL after six years, versus 727.43 million under the current schedule, an 18.9 million-token difference.

Nonetheless, the proposal does not immediately halve inflation. It only doubles the pace at which the inflation rate declines toward the unchanged long-term floor.

Issuance design has become a recurring question across major blockchains. Bitcoin caps supply at 21 million coins and halves new issuance roughly every four years. Ethereum sharply cut new issuance with its 2022 transition to proof-of-stake and burns a portion of transaction fees through the EIP-1559 mechanism introduced in 2021. Solana instead relies on a fixed disinflation schedule with no supply ceiling, and if approved, SGP-0002 would mark the first change to those launch parameters.

Lower staking yields put validator economics in focus

Lower issuance would also reduce staking rewards, since new SOL is distributed to validators and their delegators as staking income. At 68% modeled staking participation, nominal yield would fall from about 5.84% currently to 4.34% after one year, near 3.00% after two years and 2.25% after three years. Those figures exclude commissions, MEV and block-related revenue.

Validator economics also weaken gradually in the model. Among 738 validators, two additional operators become unprofitable or move from breakeven after one year. That number rises to 13 after two years and 30 after three years. Still, the authors modeled the overall validator impact as relatively limited.

The economics have already drawn institutional opposition. Nasdaq-listed Solana Company said on Aug. 21 that it would vote against SGP-0002. The company supports lower issuance as a long-term goal, but argued that changing established economics during the first governance cycle could reduce institutional predictability.

Precedent and voting thresholds

The vote follows the failed SIMD-228 debate in 2025. That proposal sought dynamic issuance tied to staking participation rather than the existing fixed schedule. About 74% of staked SOL participated, but only 61.4% of non-abstaining votes supported the proposal, below the required two-thirds threshold.

Under the new SGP process, at least one-third of network stake must participate, and two-thirds of participating stake must then vote in favor for passage. SGP-0002 therefore places two questions before the network: how quickly SOL dilution should decline, and whether governance can produce decisive consensus.