Solana validators have approved SGP-0002, a proposal to accelerate the network’s token disinflation schedule, after support narrowly crossed the required two-thirds threshold in the final hours of voting. The measure passed with 67% support, 25.16% opposition and 7.84% abstentions, based on turnout representing 60.7% of eligible stake.

The result was especially close because the proposal only cleared the 66.67% supermajority bar by roughly 0.33 percentage points. A late change by Kraken, which shifted most of its roughly 8.9 million SOL of voting stake from no to yes, appears to have been decisive.

A late reversal changed the outcome

According to the finalized validator governance tally recorded on August 29, 2026, both supply-related proposals had been rejected by Kraken at 12:33 UTC on August 28. With less than three hours remaining before voting closed at 15:00 UTC for epoch 1024, that decision had pushed SGP-0002 below the supermajority line.

Earlier that same morning, support for the proposal stood at 68.77%, with about 47.72% of eligible stake having participated. Kraken’s no vote then pulled backing down to around 65%. Before the close, however, more than 90% of the exchange’s voting stake ended up supporting the measure, allowing it to finish just above the threshold needed to pass.

What SGP-0002 changes

SGP-0002, also described as Double Disinflation and tied to SIMD-0550, doubles Solana’s annual disinflation rate from 15% to 30% while keeping the network’s long-term inflation floor unchanged at 1.5%. In practical terms, the network will now move toward that terminal rate much faster than under the previous schedule.

Under the old path, Solana was expected to reach its 1.5% inflation floor in about 5.7 years. With the proposal approved, that timeline shortens to about 2.8 years. The source article says this would mean an estimated 18.9 million fewer SOL entering circulation over the next six years.

Supporters and opponents split over trade-offs

The proposal’s main effect is a familiar one in token economics: slower issuance growth can reduce dilution for SOL holders, while also lowering staking rewards more quickly for validators and delegators. That trade-off shaped much of the debate around the vote.

Among major participants, Figment voted entirely against SGP-0002 with 17.1 million SOL in the finalized governance data. Helius and JUP supported the proposal, while other prominent custodial stakers including Everstake and P2P Validator opposed at least SGP-0002.

The source article also noted a dispute over incentives for custodial exchanges, which are paid when new SOL is issued. It said faster disinflation would reduce annual percentage yield more quickly and lower that revenue stream. Mert Mumtaz, chief executive of Helius and a co-author of the proposals, rejected that reasoning in an X post, calling it “mathematically nonsense” and arguing that any price benefit from slower supply growth would outweigh saved yield.

Part of a broader governance package

The vote on SGP-0002 was one element of Solana’s first binding governance process. In the same process, the Solana Constitution, SGP-0001, passed with 85.97% support, while SGP-0003 failed with 53.90% support.

SGP-0003 was linked to a fee proposal under SIMD-0553 that would have charged transactions for the computing power they reserve and burned part of the fees paid. Because that measure did not pass, SOL burns will remain around 650 SOL per day rather than rising to the 7,500 to 9,000 SOL range cited in the source article, which it estimated at about $800,000 a day at current prices.

Solana Company, the Nasdaq-listed treasury company trading under HSDT, said on August 21 that it supports the Solana Constitution but opposes both supply proposals. The company said reopening the inflation schedule creates uncertainty for the multi-year models used by institutions. At the time referenced in the source article, SOL was trading near $104, down about 5.2% on the day.

Source: Cryptopolitan