Solana Governance Proposal Passes by Hair's Breath Margin

A highly contentious Solana governance proposal to alter the inflation rate of SOL has passed by a razor-thin margin. The vote, called SGP-0002, was approved with 67% in favor, just barely clearing the two-thirds threshold required for passage.

The proposal doubles the 'disinflation rate' from 15% to 30%, instructing the network to create new SOL at a faster rate while shrinking the inflation rate twice as fast. The change will have a significant impact on SOL's scarcity pitch over the next few years, potentially improving its value if demand persists.

The decisive vote was largely thanks to Kraken, which switched its earlier 'No' indication to 'Yes' in the final hours of voting. Its 8.9 million SOL validator cast 90.34% of its stake in favor of the measure, tipping the outcome and securing a winning margin.

The change will result in approximately 18.9 million fewer SOL being created over the next six years, with developers projecting it will take around 2029 to hit the 1.5% terminal inflation rate, down from an estimated 2032 under the previous 15% annual reduction.