Solana Validators Accelerate Inflation Reduction Plans

The Solana network has taken steps to reduce its inflation rate by approving a proposal to double the annual disinflation rate. According to finalized voting results, the proposal, known as SGP-0002 or Double Disinflation, received 67% support from validators. This means that the network's annual disinflation rate will increase from 15% to 30%, while keeping its long-term inflation target of 1.5% unchanged.

Under the new schedule, Solana is expected to reach its terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous schedule. This change would result in an estimated 18.9 million fewer SOL being issued over the next six years, reducing dilution for SOL holders but also lowering staking rewards for validators and delegators.

The vote was part of Solana's first binding governance process, which also approved a proposed Solana Constitution while rejecting a separate proposal on resource and inclusion fees. The largest participants were divided over SGP-0002, with Figment voting entirely against the measure and Helius and Jupiter overwhelmingly backing it.