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Solana validators approve proposal to accelerate SOL disinflation

The SGP-0002 vote closed with 72.7% for-and-against support, and the approved schedule would cut emissions by about 18.9 million SOL over six years.

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Solana validators approved SGP-0002, the first measure to pass through Solana’s new onchain governance system and the first time validators agreed to reduce SOL issuance. The proposal was finalized for onchain execution after clearing the governance rules’ two thirds supermajority threshold, according to The Defiant.

SGP-0002 closed on Friday with 176.29 million SOL voting for, 66.19 million against, and 20.63 million abstaining. Excluding abstentions, support reached 72.7%, with 60.70% participation across a snapshot of 433.49 million SOL and 1,326 voters.

The outcome hinged on a late shift in voting. The Defiant reports that Kraken’s largest validator, which held 8,917,576 SOL, switched from 100% against earlier to about 90.34% for shortly before the close, moving roughly 8.1 million SOL, while Galaxy also altered its stance late.

If executed, SGP-0002 would raise Solana’s annual disinflation rate from 15% to 30%, accelerating the path to a 1.5% terminal inflation floor. The proposal estimates the change removes about 18.9 million SOL from emissions over six years, changes the terminal timing to around the first half of 2029 instead of 2032, and would reduce projected first year staking yields to 4.34% from 4.93%.

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