Overview
- Validators approved SGP-0002 on Friday, Aug. 28, directing a doubling of Solana’s annual disinflation rate from 15% to 30% and moving the 1.5% terminal inflation target toward about 2029.
- The change is estimated to prevent roughly 18.9 million SOL of issuance over six years but does not take effect until the technical spec SIMD-0550 is finalized and client teams deploy a feature gate.
- SGP-0001, a Solana Constitution establishing formal on-chain governance rules, passed with overwhelming support while SGP-0003, the resource‑based fee and burn proposal, failed to reach the two‑thirds threshold.
- Late validator moves, including a pivotal flip by Kraken and shifts from Galaxy, made the vote a cliffhanger and highlighted tensions between scarcity proponents and validators reliant on staking rewards.
- Markets reacted during the vote as U.S. Solana spot ETFs recorded strong inflows and analysts warned the faster disinflation will lower nominal staking yields and could pressure smaller validators' economics.