Solana Validators Approve Disinflation Rate Hike in Historic Governance Vote

Solana validators have approved a proposal to double the rate of SOL emissions decline in the network's first governance vote. The measure, known as SGP-0002, was finalized and ready for onchain execution after clearing the two-thirds supermajority required by the governance rules. This is the first time validators have agreed to cut issuance.

The proposal raised Solana's annual disinflation rate from 15% to 30%, accelerating the network's descent to a 1.5% terminal inflation floor. The change is expected to remove about 18.9 million SOL from emissions over six years and bring the network to terminal inflation around the first half of 2029.

The vote saw Kraken switch its position just hours before voting closed, re-casting about 8.1 million SOL in favor of the proposal. However, this reversal alone would not have changed the outcome, as support would still have finished at 69.4%, above the threshold.