Solana Validators Approve Proposal to Accelerate Disinflation Rate

Solana validators have approved a proposal to accelerate the network's disinflation rate. The proposal, known as SGP-0002 or Double Disinflation, increases Solana's annual disinflation rate from 15% to 30%, while keeping its long-term inflation target of 1.5% unchanged.

The vote was part of Solana's first binding governance process, which also approved a proposed Solana Constitution and rejected a separate proposal on resource and inclusion fees. The Double Disinflation proposal received 67% support, with 25.16% voting against and 7.84% abstaining, resulting in a 60.7% participation rate.

The change is expected to reduce the number of SOL issued over the next six years by an estimated 18.9 million, lowering dilution for holders but also reducing staking rewards for validators and delegators. Under the new schedule, Solana will reach its terminal inflation rate of 1.5% in approximately 2.8 years, compared to roughly 5.7 years under the previous schedule.