Solana Governance Vote Sends SOL Price Soaring

Solana's SOL token surged by over 44% in a month, making it the strongest single-month performance since 2024. The price of SOL reached $107.28 on February 10th and is now above $105.

The rally comes as Solana completed its first on-chain governance vote, which included three proposals (SGP). SGP-1 ratified the Solana constitution, establishing the framework for future on-chain voting.

SGP-2, proposed by Helius engineers, would double the inflation rate from 15% to 30%, moving it closer to the 1.5% lower bound in 2029 and reducing SOL supply by approximately 18.9 million over six years.

SGP-3, proposed by Temporal, splits transaction fees into base fees and resource fees, with the latter directly destroyed. The daily destruction of resource fees is expected to increase from around 650 SOL to a maximum of 9000 SOL.