Solana's Governance Shift Drives Price Surge Amid Institutional Influx

Solana's recent surge to $105 has been accompanied by significant changes in its network and governance. Over the weekend, validators approved a proposal (SGP-0002) that doubles the rate at which new token issuance declines from 15% to 30% annually.

The vote passed with 67% of weighted votes in favor, despite opposition from validator Everstake, who argued for a slower timeline. The proposal also led to the passage of a new network constitution (SGP-0001) and failed to pass a plan to alter fee structures (SGP-0003).

The accelerated disinflation schedule will reduce new SOL issuance by 18.9 million tokens over six years, pushing the point of supply stagnation to 2029. Stakers can expect their yields to fall from 5.84% to 2.25% in subsequent years.

Meanwhile, institutional money is flowing into Solana, with the Bitwise Solana Staking ETF (BSOL) crossing $1 billion in assets under management and Charles Schwab adding Solana trading to its platform.