Solana Validators Pass Binding Governance Vote to Slash Inflation Rate

Solana validators have successfully passed their first network-wide binding governance vote, approving a change to the token issuance schedule. The proposal, known as SGP-0002 or 'Double Disinflation', doubled the annual disinflation rate from 15% to 30%, shrinking Solana's inflation rate by roughly twice as fast.

This means that an estimated 18.9 million SOL tokens will never be minted over the next six years, and Solana's inflation rate will reach its terminal rate of 1.5% by H1 2029 instead of H1 2032. The vote saw a nail-biting finish with last-minute switches from opposing to supporting the proposal.

The 'Double Disinflation' change was authored by Helius engineers Lostin and 0xIchigo, who argued that it would help Solana reach its terminal rate sooner. However, Figment and Everstake publicly opposed the change, citing concerns over reduced validator economics.