Solana network fees reach new high as validators approve faster inflation cuts

Solana fees climb to all-time high

Solana’s network fees, measured in its native token SOL, reached a seven-day average of nearly 9,200 SOL on August 27, over 80% higher than three months earlier. Non-vote transactions also set a new record, averaging 191 million over seven days, up from 88 million a year ago.

Validator tips on the Jito platform averaged 2,073 SOL per day over the past week, a 26% increase from the previous week, signaling rising on-chain activity.

Validators back faster inflation cuts

A governance proposal called SGP-0002, or the Double Disinflation proposal, passed on August 28 with 67.001% support, just above the required 66.67% threshold. Voter turnout reached 60.7% across 1,326 validators, marking the highest participation in Solana’s on-chain governance history.

The proposal doubles the annual disinflation rate from 15% to 30%, reducing the projected issuance of new SOL tokens by roughly 18.9 million over six years. This means the supply of new SOL entering the market will shrink faster than before.

Impact on staking rewards

As a result of the faster disinflation, staking rewards for validators are expected to drop from about 5.25% to 2.25% by the third year. This change may pressure smaller validators who rely more on inflation-based income rather than transaction fees, potentially making many unprofitable within three years.

The average user, however, is unlikely to notice any difference in network speed or fees due to this proposal.

What is confirmed

• Solana’s seven-day average fees reached nearly 9,200 SOL on August 27.
• Non-vote transactions hit a seven-day record of 191 million.
• Jito validator tips averaged 2,073 SOL per day over the past week, up 26% week-over-week.
• SGP-0002 passed with 67.001% support, exceeding the 66.67% threshold.
• Voter turnout was 60.7% across 1,326 validators.
• The proposal doubles the annual disinflation rate from 15% to 30%.
• Projected SOL issuance will drop by roughly 18.9 million over six years.
• Staking rewards are expected to fall from ~5.25% to 2.25% by year three.

Sources

• The Block