Solana validators have approved a proposal to double the network's annual disinflation rate, cutting future SOL issuance. Finalized voting results show the proposal received 67% support, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake.

The proposal, known as SGP-0002 or Double Disinflation, raises Solana's annual disinflation rate from 15% to 30%, while leaving the network's long-term inflation target of 1.5% unchanged. Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in roughly 2.8 years, compared with about 5.7 years under the previous schedule, according to Solana Compass. The change is expected to result in an estimated 18.9 million fewer SOL issued over the next six years, reducing dilution for SOL holders while also lowering staking rewards for validators and delegators. That trade-off — lower issuance versus smaller staking yields — was central to the debate among validators, since staking rewards are a primary revenue source for operators who secure the network.

The vote was part of Solana's first binding governance process, which also approved a proposed Solana Constitution while rejecting a separate proposal on resource and inclusion fees. The process marks a shift for Solana, where protocol changes have historically been decided through off-chain coordination among core developers and validators rather than binding on-chain votes. Voting data is available at Solana Governance.

Some of the largest participants were divided on SGP-0002. Figment, the largest voter in the finalized governance data with 17.1 million SOL staked, voted entirely against the measure, while Helius and Jupiter overwhelmingly backed it.

Kraken was among those whose position shifted during the vote. The US-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold, as Solana Compass reported. By the end of voting, more than 90% of its roughly 8.9 million SOL voting stake backed the proposal.

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Solana ETF assets cross $1 billion

The governance vote comes as US-listed Solana investment products continue to attract investor capital despite SOL's weaker performance earlier this year. Bitwise's Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach the milestone, according to an X post from Bloomberg ETF analyst Eric Balchunas on Friday. US spot Solana ETFs began trading in 2025 after regulatory approval opened the door to altcoin-based funds following the success of Bitcoin and Ethereum ETFs.

US Solana ETFs have attracted roughly $1.7 billion in cumulative net inflows, with little sustained outflow since their launch, Balchunas said Friday. How the faster disinflation schedule affects staking economics and validator participation is likely to be a key point of attention as the new issuance curve takes effect.

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