Kraken Flips Vote on $1.5 Billion Solana Inflation Plan

Solana's governance process has been thrown into chaos as Kraken suddenly reversed its vote on a $1.5 billion inflation plan, sparking intense debate among validators and investors.

The proposal, SGP-0002, aims to double the disinflation rate from 15% to 30%, cutting SOL issuance by 18.9 million tokens ($1.5 billion) to reach a terminal inflation rate of 1.5% as early as 2029.

Kraken initially joined other exchanges in blocking the proposal to preserve staking yields, but after facing criticism from the community and a public accusation of 'mathematical irrationality' by Helius CEO Mert Mumtaz, Kraken changed its vote to support SGP-0002.

The final hours of voting are crucial for supporters of the deflationary proposal, who need just 1.52 percentage points to reach the two-thirds approval threshold required to pass the plan.