Solana Company Backs Constitution, Opposes Disinflation Proposals
Solana Company has revealed its stance on three Solana Governance Proposals (SGPs) that could alter the network's token issuance and fee structure. In an Aug. 21 press release, the company announced it would support SGP-0001, also known as the Solana Constitution, while opposing SGP-0002 and SGP-0003.
The proposed constitution aims to establish a governance system that allows staking participants to receive transparent votes weighted by their stake, while token holders retain control over their voting rights. This structure is designed to give financial institutions a direct way to participate in decision-making without surrendering control of their voting rights to validators.
Solana Company's support for the constitution rests on its ability to attract more institutional participants to the network. The company's chairman and CEO, Joseph Chee, stated that they 'strongly believe that institutional adoption is a critical driver of Solana's growth.'
The company opposes SGP-0002 and SGP-0003, which propose accelerating SOL disinflation by doubling the annual disinflation rate from 15% to 30%, as well as introducing variable transaction costs. Solana Company argues that changing two economic rules simultaneously could discourage institutional adoption.