Solana Cuts Inflation Faster After Historic Governance Vote Passes

Solana Cuts Inflation Faster After Historic Governance Vote Passes

Solana validators passed SGP-0002 on August 28, approving a faster disinflation schedule after the measure received 67.001% support, narrowly clearing the 66.67% supermajority threshold, according to Solana Compass. The result commits the network to a schedule designed to reach its existing 1.5% terminal inflation rate materially sooner.

The vote approved the parameter change set out in SIMD-0550, which doubles Solana's annual disinflation rate from 15% to 30%. The proposal estimates that the revised path will result in approximately 18.9 million fewer SOL emissions over six years than the previous schedule.

SGP-0002 clears the two-thirds threshold by a narrow margin

The final margin was exceptionally tight. Support exceeded the required two-thirds threshold by 0.331 percentage points, based on the reported 67.001% result.

Participation was approximately 60.7%, with about 67% voting in favour, 25.16% against and 7.84% abstaining, CoinDesk reported. Those figures show that the proposal drew substantial opposition even as it achieved the supermajority needed to pass.

30% annual disinflation brings Solana to 1.5% in 2.8 years

Under the approved change, Solana’s annual disinflation rate rises from 15% to 30%, while the terminal inflation rate remains 1.5%. The change therefore affects how quickly the network reaches that endpoint.

The SIMD-0550 proposal estimates that Solana will reach the 1.5% rate in roughly 2.8 years, compared with 5.7 years under the prior schedule—a reduction of about 2.9 years.

SIMD-0550 projects 18.9 million fewer SOL emissions over six years

The most concrete supply implication in the proposal is its six-year issuance estimate. SIMD-0550 projects approximately 18.9 million fewer SOL emissions over that period relative to the current schedule.

The figure is a comparison with the old emissions path, rather than a statement that Solana will stop issuing SOL. Issuance would continue while declining more quickly toward the unchanged 1.5% terminal rate.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related Stories