Solana's Token Price Surges to $105 Amid Network Governance Vote

Solana's token price surged to over $105 for the first time since January this year, marking its strongest month in August with a 44% increase. This comes as the network closes its first on-chain governance vote, which decided how much SOL the network inflates or disinflates going forward.

Three proposals passed above quorum, including one that doubles the disinflation rate to 30%, meaning new SOL issuance will shrink each year at a faster pace. This change is set to take effect by 2029 instead of 2032 and will remove around 18.9 million SOL from the projected issuance schedule.

Another proposal splits transaction fees into base fees that pay validators and resource fees tied to compute usage, which get destroyed outright. Daily burns would increase from $48,000 to as much as $668,000.