Solana Validators Speed Up Disinflation Schedule, Cut Future SOL Issuance

Solana validators have approved a proposal to accelerate the network's disinflation schedule. The 'Double Disinflation' proposal (SGP-0002) passed with 67% support, while 25.16% of voting stakeholders opposed it and 7.84% abstained. This decision increases Solana's annual disinflation rate from 15% to 30%, but leaves the long-term inflation target at 1.5%. The accelerated schedule is expected to bring terminal inflation in approximately 2.8 years, down from the previous estimate of around 5.7 years.

According to estimates, this change will result in about 18.9 million fewer SOL being issued over the next six years. While this may reduce dilution pressure for existing holders, it could also lower staking rewards for validators and delegators compared to the original plan. Major stakeholders such as Figment, Helius, and Jupiter had differing opinions on the proposal, with some voting entirely against it.

The governance decision comes as US-listed Solana investment products continue to attract capital. Bitwise's Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach this milestone. The influx of new investors may influence long-term holder incentives as governance outcomes shape monetary policy decisions.