Solana Governance Approves Faster Disinflation Schedule

Solana’s latest governance vote cleared the Double Disinflation proposal (SGP‑0002) with 67% of participating stake in favor, just surpassing the two‑thirds threshold required for approval. Participation reached 60.7% of eligible stake, comfortably exceeding the one‑third quorum.

What the proposal changes

The approved SIMD‑0550 improvement would double the annual rate at which SOL inflation declines, moving from a 15% reduction per year to a 30% reduction. The terminal inflation floor of 1.5% remains unchanged. Under the new schedule, the network would reach this floor in roughly 2.8 years instead of the current 5.7 years.

Projected impact on supply

Implementing the faster disinflation path is estimated to remove about 18.9 million SOL from the projected issuance over the next six years, roughly 2.6% of the supply that would be created under the existing schedule.

Technical rollout requirements

Although the governance dashboard marks SGP‑0002 as finalized, the technical document SIMD‑0550 is still under review. Validators must add support for a new feature gate called double_disinflation_rate, which will activate at an epoch boundary and apply the new schedule to rewards from the following epoch. The change is designed to be consensus‑level, requiring uniform implementation across all validator clients.

Related proposal rejected

Alongside the inflation vote, Solana voters rejected the Resource and Inclusion Fee proposal (SGP‑0003). Despite 61.14% participation, only 53.9% supported the change, falling short of the two‑thirds requirement. The proposal would have introduced a variable resource‑based fee model, potentially increasing daily token burns but not making SOL a net‑deflationary asset.

Institutional perspective

Solana Company, a Nasdaq‑listed digital‑asset treasury firm (ticker HSDT), expressed support for lower issuance and resource‑based fees in principle but opposed altering established economic parameters during Solana’s first formal governance cycle, citing concerns about staking yield stability for institutional investors.

Network activity backdrop

Network usage continues to rise, with July transactions hitting a record 4.2 billion—a 13.5% increase from June and a 91% rise since December 2025. The busiest seven‑day period recorded 1.32 billion non‑vote transactions.