Solana’s plan to cut its inflation rate faster has passed a key governance vote, with 67% of participating SOL supporting the proposal. The change could reduce projected SOL issuance by about 18.9 million tokens over the next six years.
The proposal, known as SGP-0002 or Double Disinflation, received support from 176.29 million SOL, equal to 67% of the participating stake. About 66.19 million SOL, or 25.16%, voted against it, while 20.63 million SOL, or 7.84%, abstained.
Around 60.7% of eligible SOL took part in the vote, easily passing the one-third participation requirement. Solana’s governance rules also require at least two-thirds of participating stake to support a proposal. With 67% backing, SGP-0002 passed by only a small margin.
The vote does not mean the lower inflation rate starts immediately. The governance decision sets the direction, but developers still need to make the required technical changes before the new system can go live.
Under the proposed change, SOL’s inflation rate would fall twice as quickly as it does today. The annual reduction rate would increase from 15% to 30%. Solana would still keep its existing minimum inflation rate of 1.5%.
If the change is activated as planned, Solana could reach the 1.5% inflation level in about 2.8 years instead of roughly 5.7 years. The proposal estimates that this would reduce new SOL issuance by around 18.9 million tokens over six years, equal to about 2.6% of the supply expected under the current schedule.
The technical rollout will still take time. Validators need to update their software and support a feature called double_disinflation_rate. The change would activate at an epoch boundary, with the new inflation schedule applying to rewards from the next epoch.
Developers also designed the change so that SOL rewards continue normally when the new system begins. The inflation calculation would be reset at the activation point, meaning there would be no sudden drop in rewards or changes to rewards that had already been earned.
Every validator needs to calculate the new inflation rate in the same way because inflation rewards are part of Solana’s network state. If different validators used different calculations, it could create problems across the network.
Solana has looked at other ways to change its inflation system before. One earlier proposal, SIMD-0228, would have tied SOL issuance to the amount of SOL being staked. That proposal failed to reach the required participation level in March 2025 after concerns were raised about validator income, staking rewards and the complexity of the system.
The new proposal takes a simpler approach by keeping a fixed inflation schedule. Its supporters say this gives validators and investors a more predictable path while avoiding a sudden cut in rewards.
At the same time, another Solana governance proposal failed. SGP-0003, which focused on changing how transaction fees work, received 53.9% support. That was well below the two-thirds needed for approval.
The proposal would have replaced Solana’s current flat base fee with a smaller inclusion fee plus another fee based on the network resources requested by each transaction. Validators would receive the inclusion and priority fees, while the network would burn the resource-based portion.
Under the current system, Solana charges a base fee of 5,000 lamports per signature. Half is burned and half goes to the validator producing the block. Priority fees go entirely to validators.
The proposed fee system could have increased the amount of SOL burned by the network. Based on May 2026 activity, the proposal estimated daily burns could eventually reach between 7,500 and 9,000 SOL, compared with around 648 SOL per day under the current base-fee system.
However, the change would not have been enough to make SOL deflationary on its own. Even at the highest proposed burn rate, the additional burn was estimated at around 0.5% of total supply each year, compared with an inflation rate of about 3.8%.
Transaction costs would also have changed depending on how much network capacity an application requested. Some simple transactions could become cheaper, while certain high-resource transactions could become much more expensive.
Solana Company, a Nasdaq-listed digital asset treasury firm, opposed both proposals. The company said it supports lower SOL issuance and resource-based fees over the long term but believes changing both economic systems during Solana’s first formal governance cycle could create uncertainty.
The company argued that institutions need predictable staking income and transaction costs when planning budgets, preparing financial reports and evaluating validator operations.
The faster inflation reduction could also affect investors in US-listed Solana products that earn staking rewards. Bitwise’s Solana Staking ETF held about 8.18 million SOL worth roughly $622 million as of Aug. 9, with 99% of its holdings staked and a reported net staking reward rate of 5.84%.
Grayscale has also planned quarterly staking distributions for its Solana Staking ETF. The amount paid to shareholders would depend on the staking rewards earned by the fund, its expenses, management arrangements and tax treatment.
The governance vote comes as activity on Solana continues to grow. July transactions reached a record 4.2 billion, up 13.5% from June and around 91% from December 2025.
Blockworks data also showed 1.32 billion non-vote transactions between Aug. 17 and Aug. 23, making it the busiest seven-day period for Solana activity on record.
With the inflation proposal now approved, the next major step is the technical rollout. Solana’s validators will need to support the new system before the faster disinflation schedule can actually take effect.
