Solana Nears Inflation Floor with Controversial Issuance Rate Hike

Solana's native token SOL has reached a new seven-month high of over $105 after several major developments within its ecosystem.

The network successfully reduced future SOL issuance by doubling its annual disinflation rate from 15% to 30%, with validators approving the proposal by a narrow margin of approximately 67%

This decision, known as SGP-0002, will bring Solana's terminal inflation rate down faster than expected, reducing the time it takes for the network to reach its floor from mid-2032 to H1 2029.

However, critics argue that this change comes at a cost: normal staking yields are projected to fall faster as fewer new tokens are distributed.