Solana validators have narrowly approved proposal SGP-0002 to double the network's annual disinflation rate from 15% to 30%. The vote, which concluded on August 28, 2026, passed with 67% support (176.29 million SOL) after last-minute voting switches by Kraken and Galaxy. While the vote establishes a policy mandate to reduce SOL issuance by an estimated 18.89 million tokens over six years, the changes are not yet live and must undergo technical implementation and client coordination via SIMD-0550.
SGP-0002 vote outcome
- ▪The SGP-0002 proposal received 66.19 million SOL votes against and 20.63 million SOL in abstentions, achieving approximately 67% support of the total displayed turnout.
- ▪The SGP-0002 vote reached 60.7% participation of eligible stake, clearing the network's one-third quorum requirement.
- ▪Solana proposal SGP-0002, which proposes to double the network's annual disinflation rate, was accepted on August 28, 2026, with 176.29 million SOL voting in favor.
Last-minute validator vote switches
- ▪The Kraken 2 validator, representing approximately 2% of the total vote, recast 8.92 million SOL from 100% against to 90.34% for and 9.66% against shortly before the voting deadline.
- ▪Asset manager Galaxy, representing roughly 1.7% of the vote, reallocated its voting weight from 92% abstaining to 58.36% in favor of SGP-0002 in the final minutes of voting.
Approval denominator calculation methods
- ▪Solana's written governance-proposal policy excludes abstentions from the approval denominator, measuring supporting votes only against the sum of 'for' and 'against' votes.
- ▪Under Solana's official policy denominator, the 176.29 million SOL voting 'for' SGP-0002 represented 72.7% support, clearing the two-thirds threshold by approximately 14.64 million SOL.
Implementation through SIMD-0550
- ▪The passage of SGP-0002 does not immediately alter Solana's monetary schedule, as the technical changes must still be implemented through Solana Improvement Document SIMD-0550.
- ▪Implementing the faster disinflation schedule requires specifying, testing, and coordinating the consensus-affecting emissions changes across Solana clients before activation.
Disinflation proposal economic impact
- ▪Solana Company opposed SGP-0002 prior to the vote, as staking on company-held SOL generated 99.4% of its second-quarter revenue of over $2.5 million.
- ▪The economic model for SGP-0002 estimates that approximately 18.89 million fewer SOL will be issued over a six-year period, which could reduce nominal staking yields.
- ▪SGP-0002 proposes to double Solana's annual disinflation rate from 15% to 30% while keeping the terminal inflation rate at 1.5% unchanged.
Solana governance process debut
- ▪The SGP-0002 vote was part of Solana's first network-wide governance cycle, which put three distinct proposals before validators to decide core economic and governance rules.
- ▪Solana proposal SGP-0003, which proposed transaction fee changes to increase the amount of SOL burned, failed after receiving only 54% support.
- ▪Solana proposal SGP-0001, which establishes a constitution for future network governance, passed with 95.35% support and 0.22% opposition.
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