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Solana validators face lower earnings after Double Disinflation vote

The Double Disinflation proposal, which passed with about 67.0% support, aims to double the annual disinflation rate to 30%, cutting projected SOL issuance by roughly 18.9 million over six years.

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Solana saw record fee generation and usage metrics even as a governance vote moves the network toward lower long term inflation-based rewards for validators, according to The Block.

The outlet said SOL fee generation rose to a seven day average of nearly 9,200 SOL on Aug. 27, more than 80% higher than three months earlier, while non vote transactions hit a seven day record of 191 million. Jito validator tips averaged 2,073 SOL per day over the past week, up 26% week over week, pointing to higher on chain activity.

At the same time, The Block reported that the Double Disinflation proposal, SGP 0002, passed on Friday with 67.001% support versus a 66.67% threshold, with turnout reaching 60.7% across 1,326 validators. The proposal doubles the annual disinflation rate from 15% to 30%, which the outlet said would remove about 18.9 million SOL from projected issuance over six years.

The Block added that because disinflation reduces new SOL supply, validators may earn less for the same amount of work, and it expects staking rewards to fall from about 5.25% to 2.25% by year three. The outlet said that dynamic could make some validators unprofitable within the next three years, though it expects average users would likely notice no change in network speed or fees.

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