Solana Validators Approve Faster Disinflation Rate Hike

Solana's Double-Disinflation Proposal Gains Approval

The Solana network has approved a proposal to increase its annual disinflation rate from 15% to 30%, with the long-term inflation target remaining unchanged at 1.5%. This move is expected to accelerate the network's reduction in new SOL issuance, potentially reaching the terminal rate in about 2.8 years instead of roughly 5.7 years under the previous schedule.

The proposal, known as SGP-0002, received 67% support from validators, with 25.16% voting against and 7.84% abstaining. The vote involved more than 433 million SOL in participating stake, with around 176.3 million SOL voted in favor, 66.2 million against, and 20.6 million abstained.

The change is not active immediately, as validator software must implement the double_disinflation_rate feature gate before activation can occur at an epoch boundary. This move may strengthen SOL's scarcity, but it could also pressure validator economics by reducing staking rewards unless network fees and other revenue sources compensate validators and delegators.