Solana validators have narrowly approved SGP-0002, a proposal designed to accelerate reductions in new SOL issuance, following a dramatic finish to the blockchain's first network-wide governance vote.
The measure, known as the “Double Disinflation” proposal, finished Friday with approximately 67% support, only slightly above the two-thirds majority required for approval. Roughly 25% of participating stake opposed the proposal, while 7.84% abstained.
Participation reached 60.7% of eligible stake, comfortably exceeding the one-third quorum requirement.
The result means Solana will accelerate the rate at which its inflation schedule declines, effectively reducing the amount of new SOL entering circulation faster than under the previous system.
Kraken and Galaxy Swing the Vote
SGP-0002 remained below the necessary approval threshold even during the final hour of voting, turning the decision into a closely watched contest among Solana validators.
Two major last-minute changes ultimately helped push the proposal across the finish line.
Kraken 2, a validator associated with crypto exchange Kraken and representing approximately 2% of voting weight, switched its position from opposing the proposal to supporting it as the deadline approached.
Galaxy also played a significant role. The asset manager controlled approximately 1.7% of voting weight and reportedly shifted its allocation during the final minutes from predominantly abstaining toward majority support.
Those changes helped lift SGP-0002 above the required two-thirds threshold.
Helius CEO Mert Mumtaz, a prominent supporter of the proposal, described the final hours as an intensive effort to secure sufficient validator participation.
What Double Disinflation Means for SOL
Solana's tokenomics include an inflation schedule through which new SOL is issued to support validator staking rewards and network security. The inflation rate is designed to decline over time until reaching a long-term minimum.
SGP-0002 accelerates that decline, meaning future SOL issuance will fall more quickly than previously planned.
Supporters see lower issuance as a way to reduce dilution for existing SOL holders and potentially improve the cryptocurrency's long-term monetary characteristics.
The proposal nevertheless attracted substantial opposition, reflecting the potential trade-off between lower token issuance and validator economics. Faster reductions in staking rewards could affect smaller validators or participants that rely heavily on newly issued SOL for revenue.
SOL briefly strengthened near the conclusion of the vote but remained below Thursday's high. The token was trading around $106, down approximately 1.2% over the previous 24 hours.
Solana Holds First Network-Wide Governance Vote
The closely contested decision was part of Solana's first network-wide governance exercise, giving validators a direct role in determining major economic and governance rules.
Three proposals were presented, covering everything from how future votes should operate to SOL issuance and transaction fee mechanics.
The first measure, SGP-0001, establishes a governance framework for future network-wide decisions. It defines procedures for submitting proposals as well as participation requirements, voting weights and approval thresholds.
Unlike the disinflation proposal, SGP-0001 passed comfortably with 95.35% support, while only 0.22% voted against it.
Its approval effectively provides Solana with a formal framework for handling future decisions affecting the network.
SOL Burn Proposal Fails
The third proposal, SGP-0003, targeted Solana's transaction fee structure and would have introduced changes resulting in more SOL being burned.
Unlike the first two measures, it failed to secure the necessary support. Approximately 54% of participating voting power backed SGP-0003, leaving it below the required approval threshold.
The contrasting results show that validators were willing to support faster reductions in new SOL issuance while remaining more divided over changes to the network's fee-burning mechanism.
Together, the three proposals represent a major development in how Solana handles network-level decisions. Validators have now directly influenced both Solana's governance structure and the future trajectory of SOL supply.
With SGP-0002 passing by one of the narrowest possible margins, Solana's first governance vote also demonstrated how large validators can become decisive players when economically significant proposals are closely contested.
