Solana governance has approved SGP-0002, a proposal that accelerates the network’s inflation decline while keeping its 1.5% terminal inflation target unchanged. The measure, called Double Disinflation, raises the annual disinflation rate from 15% to 30%, cutting the estimated time to reach the terminal rate from about 5.7 years to roughly 2.8 years.

The result passed narrowly on Solana’s published threshold. Michael Hubbard, chief executive of Solana infrastructure and treasury company SOL Strategies, said the change was premature and argued it was advanced before the network had fully assessed its effects on validators, stakers, and other participants.

A narrow win in the final tally

According to the final governance count, SGP-0002 received 176.29 million SOL in favor, representing 67% of participating stake. Another 66.19 million SOL voted against the proposal, while 20.63 million SOL abstained. Participation reached 60.7% of eligible stake.

That outcome put the proposal only slightly above the 66.67% approval threshold, clearing it by roughly one-third of a percentage point. The measure is estimated to remove about 18.9 million SOL from projected issuance over six years.

Why Hubbard says the cut came too soon

Hubbard told crypto.news that Solana’s current inflation rate, around 4% to 4.5%, is not severe enough to justify a faster reduction. In his view, the network moved ahead with the change before it had a full understanding of how the policy would affect different groups operating on Solana.

He also disputed the argument that issuance is a primary factor suppressing SOL’s market performance. Hubbard said staking rewards tend to remain within the Solana ecosystem because newly issued SOL is often restaked instead of being sold immediately, meaning a cut in issuance would not necessarily create an immediate or easily measurable effect on price.

Another vote has opened a dispute over abstentions

At the same time, Solana is facing disagreement over how to interpret the result of SGP-0003. The official final tally showed 53.9% support, 18.92% against, and 27.18% abstaining.

Hubbard argued that the method communicated at the start of voting treated abstentions differently. On that basis, excluding abstentions would leave SGP-0003 with about 74% support among voters who chose either yes or no, enough to clear a two-thirds requirement. He therefore views the proposal as approved under the rules participants were originally given.

Fee redesign draws criticism from SOL Strategies

SGP-0003 backed SIMD-0553, a proposed redesign of Solana transaction charges that would introduce a fee varying with the computing resources requested by a transaction. Hubbard said that model would add unnecessary complexity to transactions and could increase costs for applications that use large amounts of resources, including trading routers and propAMMs.

He further alleged that the fee structure could benefit the associated propAMM while making conditions more expensive for direct competitors. Before the vote, a simulation indicated that the impact would depend on transaction design and the compute limits requested.

Long-running validator concerns remain in focus

Debates over Solana inflation have continued since 2025, including concerns that sharper cuts could put pressure on smaller validators. Hubbard’s criticism does not frame either SGP-0002 or SGP-0003 as existential for the network, but instead focuses on process, timing, and the practical consequences for participants.

The next confirmed development is the continuing dispute over how SGP-0003 should be interpreted, particularly whether abstentions were counted in the way voters were initially told. For SGP-0002, the approved policy now sets a faster route toward Solana’s existing 1.5% terminal inflation rate.

Source: crypto.news