Solana Validators Pass Disinflation Proposal After Kraken's Late-Turning Vote

Solana validators narrowly approved a proposal to double the network's annual disinflation rate by just 0.33 percentage points after Kraken flipped its stake from no to yes in the last hours.

The support for SGP-0002, Double Disinflation, was at 67% with 25.16% opposition and 7.84% abstentions on a turnout of 60.7% of eligible stake.

Before Kraken's reversal, the proposal had support from just above 65%, but after its change of heart, it secured over 90% of the US exchange's ~8.9 million SOL of voting stake.

The plan would double the yearly disinflation rate on Solana from 15% to 30% but keep the network's long-term inflation target at 1.5%, resulting in less dilution for SOL holders, but lower staking rewards for validators and delegators.