Solana Validators Back Disinflation Plan as Daily Burn Proposal Fails

The Solana validators have approved a proposal to reduce the rate of new SOL token creation by 30% annually, reaching 68.77% support and crossing the approval threshold with little margin.

This disinflation plan, known as SGP-0002, would accelerate the process of reducing issuance, bringing it down to its minimum of 1.5% annually around 2029, instead of 2032.

The proposal was one of three put to a vote by the Solana validators in their first on-chain governance session. The others were SGP-0001, which passed with ease and establishes the formal rules for governance participation and voting weightage, and SGP-0003, which would have raised daily burns from around 650 SOL to between 7,500 and 9,000 SOL, but fell short of approval due to high abstention rates.

Solana Company, a firm that maintains a SOL treasury, opposed both economic proposals, citing the need for predictable rules for institutional planning.