Kraken Flips Support for Solana's Inflation Reform Vote

Solana's governance vote on inflation reform has entered its final stretch after crypto exchange Kraken reversed its position and backed the proposal. The 'Double Disinflation' proposal, SGP-0002, aims to double the network's annual disinflation rate from 15% to 30%, reducing future SOL issuance by approximately 18.9 million tokens, valued at about $1.5 billion.

The change would allow Solana to reach its terminal inflation rate of 1.5% as early as 2029. Supporters argue that lower SOL issuance could reduce dilution and tighten long-term token supply, potentially benefiting investors if demand remains strong.

Kraken initially opposed SGP-0002 alongside major staking operators including Figment, Everstake and P2P.org. However, criticism from retail participants and prominent Solana community figures intensified after Kraken's initial opposition. Helius CEO Mert Mumtaz was among those publicly challenging the opposition.