Solana Validators Pass Disinflation Proposal by Hair's Breadth

Solana's validators have narrowly passed a proposal to slash inflation on the network by voting in favor of increasing the disinflation rate from -15% to 30%. The vote, which was seen as uncertain until the last minute, resulted in 176.29 million SOL (67%) supporting the change, while 66.19 million SOL (25.16%) voted against.

Helius CEO Mert Mumtaz played a key role in securing the necessary votes, with his company's support helping to flip Kraken's vote from 'no' to 'yes'. Mumtaz had earlier dismissed concerns that validators were voting against the proposal to preserve extra revenue through yield as 'mathematically nonsense', suggesting those who prioritize quantity over value should consider moving to Venezuela.

Not all validators opposed the change, however. Everstake expressed concerns about the pace of the proposed change and its potential impact on smaller validators, staking participation, and delegators.