Solana Validators Approve Disinflation Proposal by Razor-Thin Margin

Solana's validators have narrowly approved a proposal to double the network's annual disinflation rate from 15% to 30%, but keep its long-term inflation target at 1.5%. The proposal, SGP-0002, cleared the two-thirds supermajority by just 0.33 percentage points after Kraken flipped most of its stake from no to yes in the last hours.

The change will bring Solana's terminal rate down to 2.8 years from an estimated 5.7 years under the old path, resulting in approximately 18.9 million fewer SOL entering circulation over the next six years.

The disinflation proposal has both supporters and detractors. On one hand, it means less dilution for SOL holders. However, on the other hand, it will lower staking rewards for validators and delegators.