Solana Disinflation Vote Passes as SOL Falls 3.83%

Solana validators approved the network’s first binding on-chain governance vote. The key Solana disinflation proposal, SGP-0002, passed narrowly with 67.0% support, just above the 66.67% threshold. It will double the annual reduction in new SOL issuance from 15% to 30%, bringing Solana’s 1.5% inflation floor forward to 2029 from 2032. The change is expected to reduce new SOL issuance by about 18.9 million tokens over six years, which could support SOL’s long-term token economics if demand remains strong. However, lower issuance may reduce staking yields from about 5.25% to roughly 2.25% within three years. Kraken and Galaxy changed their positions late in the vote. Validators also approved SGP-0001, the Solana Constitution, with 86% support. They rejected SGP-0003, a proposed Resource and Inclusion Fee that could have increased daily SOL burns from about 650 to as many as 9,000 tokens. After the burn proposal failed, SOL fell 3.83% on 28 August to close at $105, despite reaching $110.14 intraday and gaining about 44% over the month. Traders may view the faster Solana disinflation as a long-term positive, but the narrow vote and weaker staking yields could limit the immediate bullish response.