Solana Validators Speed Up Disinflation Rate by 100%

Solana validators have made a significant change to the network's token supply schedule by voting to double the protocol's annual disinflation rate from 15% to 30%. This decision is expected to slow future SOL issuance while preserving Solana's long-term inflation endpoint of 1.5%, which will be reached faster than previously estimated.

The proposal, known as SGP-0002 or 'Double Disinflation', received 67% support in the governance vote, with 25.16% voting against and 7.84% abstaining. The participation rate was 60.7% of eligible stake, according to the finalized tally.

The revised schedule is expected to bring Solana to the 1.5% terminal inflation level in about 2.8 years, compared with an estimated roughly 5.7 years under the previous disinflation pace. The reduction in issuance is estimated to be around 18.9 million SOL over the next six years.

The decision was part of Solana's first binding governance process and was met with some opposition from major participants. Figment, the largest voter shown in the finalized governance data with 17.1 million SOL staked, voted entirely against the measure. However, other large participants like Helius and Jupiter supported the proposal.