Solana validators approved a proposal to double the rate at which SOL issuance declines. The margin was razor-thin. The vote, the network’s first binding on-chain governance decision, closed August 28, 2026.
The measure cleared its two-thirds threshold by roughly a third of a percentage point. Designated SGP-0002 and dubbed “Double Disinflation,” it passed with 67.0% of stake voting in favor against 66.67% required, according to Decrypt. Some 176.29 million SOL supported it; 66.19 million opposed, across 1,326 votes cast at 60.7% quorum. The proposal tracks SIMD-550, filed by engineers at infrastructure firm Helius.
The practical effect: Solana’s yearly disinflation rate jumps from 15% to 30%. Inflation now hits its 1.5% floor in 2029 instead of 2032. Roughly 18.9 million fewer SOL would be created over the next six years under the new schedule. Less new issuance means less paid out to stakers. 21Shares projects staking yield falling from roughly 5.25% today to about 2.25% within three years. Smaller validators could be squeezed out entirely, per the same analysis, since issuance is what funds their compensation.
Late switches decided it. Kraken, holding 8.92 million SOL in voting power, voted against through the entire count before flipping at the last minute. Galaxy initially abstained, effectively standing against, then changed its vote in the final hour. Exact clock times for the switches were not reported. Arjun Sethi, Co-CEO of Kraken, wrote in a reply to Helius CEO Mert Mumtaz: “Custodians should be conduits, not voices.” Mumtaz had lobbied for the proposal and welcomed the reversal.
Not every measure on the ballot survived. A separate fee-burning proposal, SGP-0003, failed. It drew 53.9% in favor, well short of the two-thirds bar, despite 142.84 million SOL supporting it against 50.15 million opposed and 72.03 million SOL abstaining. That proposal tracked SIMD-553 from R&D firm Temporal. It would have split Solana’s transaction fee into a base inclusion fee that still pays validators and a new resource fee tied to compute use that would be destroyed outright. In practice, daily SOL burns would have risen from roughly 650 SOL, worth about $48,000, toward as much as 9,000 SOL, worth around $668,000. The code had already cleared review from Solana’s two client teams, Anza and Firedancer, on July 20. The vote was about activation, not readiness.
A third item fared better. SGP-0001, establishing a Solana Constitution that formalizes the governance process, passed comfortably: 86.0% support, 193.65 million SOL for versus 4.63 million against, across 1,153 votes at 52.0% quorum.
Validator economics split along predictable lines. The Solana Company (Nasdaq: HSDT), a treasury firm, backed the constitution but voted against both economic changes. Their argument: the timing was wrong for institutional stakers who want predictable yield. DeFi Development Corp voted the other way on all three and bought 19,000 SOL for $1.86 million afterward.
SOL closed the day lower. The Coinbase daily candle for August 28 opened at $109.18, touched $110.14, dropped to $103.63, and closed at $105.00. That is a 3.83% decline from the open and roughly 5.4% off the recent swing high near $111. The token was still up about 44% on the month into the vote, its strongest August since 2024.
No date for implementing SGP-0002 has been set. The vote is a governance result, not yet a code change. Validators would apply the new parameters through Solana’s standard upgrade process in subsequent protocol releases.
