Solana's Token Price Surges on Governance Vote and Distribution Deal

Solana's token price surged in August, rising by nearly 44% and reaching above $105 for the first time since January.

The surge comes as Solana closed its first on-chain governance vote, deciding how much of its native SOL tokens to inflate or disinflate annually. Three proposals passed with all three exceeding quorum: SGP-0002 doubles the disinflation rate from 15% to 30%, SGP-003 splits transaction fees into base and resource fees, and a third proposal is not specified.

The proposed changes will have significant effects on stakers and validators. The disinflation rate change means that staking yields will drop from about 5.25% to around 2.25% within three years. Validators could be squeezed out entirely by the new resource fee structure, which would destroy a large portion of transaction fees.

The changes are set to take effect in 2029 instead of 2032, reducing projected SOL issuance and landing the cost on stakers. Meanwhile, Charles Schwab announced it will add Solana's token to its crypto platform, expanding distribution channels for SOL.