Kraken Flips Vote on Solana Deflation Proposal

Solana's first-ever on-chain vote has entered its final hours, with US-based crypto exchange Kraken reversing its position and backing a deflationary proposal under pressure from the retail community.

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

Kraken initially joined Figment, Everstake, and P2P.org in blocking the inflation reform to preserve staking yields, but its decision was met with criticism from Helius CEO Mert Mumtaz, who publicly accused the exchanges of mathematical irrationality.