Key facts
- Solana validators voted to double the network's annual disinflation rate from 15% to 30%.
- The change accelerates Solana's path to a 1.5% issuance floor, expected by 2029.
- The proposal, SGP-0002, passed with 67.0% of the vote.
- Approximately 18.9 million fewer SOL tokens will be created over the next six years.
- Staking yields are projected to fall from around 5.25% to approximately 2.25% within three years.
Solana validators have approved a proposal to double the network's annual disinflation rate from 15% to 30%, accelerating the timeline for SOL's annual issuance to reach its 1.5% floor by 2029, a shift from the previous 2032 target. This governance vote, the first binding on-chain process for Solana, is expected to result in approximately 18.9 million fewer SOL tokens being issued over the next six years. The proposal, SGP-0002, passed narrowly with 67.0% support, with major staking provider Kraken switching its vote to back the measure in the final hours. Concurrently, the Solana Constitution (SGP-0001) was ratified with 86% support, while a proposal to significantly increase daily SOL burns (SGP-0003) failed. The reduced issuance is anticipated by some to be bullish for SOL's long-term price, though it will also lower staking rewards, with yields projected to fall from around 5.25% to approximately 2.25% within three years. Following the vote, SOL experienced a price drop.