Kraken tips Solana’s razor-thin inflation vote

Kraken’s final vote swings Solana governance decision

A highly contested proposal on the Solana network has passed by a very small margin. The vote, known as SGP-0002, received exactly 67% support from stakeholders. Official rules require two-thirds, or 66.66%, of participating stake to pass, so the measure cleared the bar by just 0.33 percentage points.

The approval changes how Solana manages its inflation. SOL, the native cryptocurrency, will now reduce its inflation rate twice as fast as before. The so-called "disinflation rate" has doubled from 15% to 30%.

Key to this outcome was a late change of heart from crypto exchange Kraken. The exchange holds a large validator labeled “Kraken 2,” which manages 8.9 million SOL. At the last minute, it switched its vote from "No" to "Yes," casting 90.34% of its stake in favor. Before this switch, the proposal would have failed at roughly 63.9% support.

Understanding Solana’s monetary policy shift

This vote does not end inflation entirely. Solana will remain an inflationary network, meaning new SOL tokens will continue to be created. The debate was only about how quickly that creation rate slows down.

Under the previous plan, the network was not expected to reach its long-term floor of 1.5% inflation until around 2032. By doubling the reduction rate to 30%, developers project that the network will hit that 1.5% floor around 2029 instead. This change is expected to result in approximately 18.9 million fewer SOL tokens being created over the next six years.

Other proposals see mixed results

The voting session included two other proposals alongside the inflation change. Stakeholders approved SGP-0001, known as the “Solana Constitution,” with nearly 86% support. This proposal formalizes governance processes and aims to move more decision-making on-chain, rather than relying on off-chain discussions.

However, voters rejected SGP-0003. This proposal, which sought to adjust how transaction fees are burned and paid to block leaders, received only 53.90% support, falling well short of the required two-thirds threshold.

What is confirmed

• SGP-0002 passed with 67% of participating stake.
• Solana’s disinflation rate has doubled from 15% to 30%.
• Kraken’s late vote switch was mathematically decisive.
• SGP-0001 (Solana Constitution) passed with 85.97% support.
• SGP-0003 was rejected with 53.90% support.

Why this matters for crypto investors

The vote is the first successful proposal under Solana’s new binding, on-chain voting system. It signals that the network can execute structural changes to its monetary policy through democratic means. For holders, the change reduces the supply of new SOL entering the market over the coming years, which some argue improves the asset's scarcity profile over time.

What happens next

While the vote has passed, the changes are not instantaneous. Developers must still re-anchor the supply curve, test the technical implementation, and activate the feature gate. Once active, the slower inflation rate will begin to take effect gradually.

Sources

• Protos