Solana Validators Narrowly Approve Proposal to Speed Up Token Supply Cuts

Solana network approves faster disinflation in first governance vote

Solana validators recently approved a proposal to speed up the reduction of new SOL token issuance. The measure, known as SGP-0002, passed with 67% support, barely clearing the required two-thirds majority. Solana is a blockchain, which is a digital ledger used to record transactions and run decentralized applications.

The vote was part of the network's first-ever governance exercise. During this process, validators—the entities that process transactions and maintain the network—voted on three separate proposals regarding how the network is managed and its economic rules.

Key details of the Solana governance results

• The proposal to speed up token disinflation passed with 67% in favor and 25% against.
• A proposal for a governance "constitution" passed with 95.35% support.
• A third proposal to increase the amount of SOL burned during transactions failed with 54% support.
• Participation reached 60.7% of eligible stake, meeting the minimum requirement for a valid vote.

Last minute switches from Kraken and Galaxy

The outcome of the disinflation vote remained uncertain until the final minutes. Two major participants, Kraken and Galaxy, changed their positions shortly before the deadline. Kraken 2, a validator linked to the exchange that holds about 2% of the voting weight, switched from voting against the proposal to voting for it.

The asset manager Galaxy also shifted its vote in the final moments. Previously abstaining, Galaxy moved its 1.7% voting weight to support the proposal. Mert Mumtaz, CEO of Helius and a supporter of the measure, stated that the switches allowed the proposal to pass by a very small margin.

Other measures on the ballot

While the disinflation proposal was the most closely watched, validators also considered two other measures. SGP-0001, which establishes rules for how future network decisions are made, passed easily. This document defines how votes are weighted and what thresholds are needed for approval.

However, SGP-0003 did not pass. This proposal suggested changes to transaction fees that would have resulted in more SOL being permanently removed from circulation, a process often called burning. It failed because it did not reach the necessary support levels.

What is confirmed regarding the vote

It is confirmed that SGP-0001 and SGP-0002 passed, while SGP-0003 failed. The participation rate of 60.7% was sufficient to make the results official. Following the conclusion of the vote, the price of the SOL token was reported down 1.2% over a 24-hour period, trading near $106.

Why the first network-wide vote matters

This event marks a shift in how the Solana network makes major economic decisions. It gave validators a direct voice in determining the supply of tokens and the rules for future governance. By establishing a constitution and adjusting token issuance, the community has begun setting formal standards for the blockchain's long-term operations.

Sources

• CoinDesk