The Solana community has made a fateful decision that radically changes the network's monetary policy. During an on-chain vote that concluded on August 28, proposal SGP-0002 was approved, doubling the annual disinflation rate from 15% to 30%. This is one of the most significant steps in Solana's economy in recent years, capable of radically shifting the balance of power within the ecosystem.
The initiative received 176.29 million SOL in favor, while holders of 66.19 million coins voted against, and 20.63 million SOL abstained. SGP-0002 is based on the technical document SIMD-0550, prepared by the infrastructure company Helius. The key goal is to reduce the time to reach the target inflation rate of 1.5% from the current 5.7 years to 2.8 years.
Economic implications for stakers
My analysis shows that this decision is double-edged. On one hand, it significantly reduces inflationary pressure and strengthens SOL's position as a deflationary asset. On the other, the accelerated reduction in issuance directly hits staking yields. According to calculations by the authors of SIMD-0550, nominal yields could drop from the current 5.84% to 4.34% in the first year, then to 3% and 2.25% in the second and third years, respectively.
This will inevitably lead to consolidation in the validator market. According to Helius estimates, out of 738 operators, two could become unprofitable in the first year, 13 in the second, and 30 in the third. However, these figures heavily depend on future staking volumes and commission fees, which could partially offset the losses.
Political struggle and disagreements
The vote revealed a serious rift among major players. Figment, which manages a significant stake of 17.1 million SOL, voted against. Meanwhile, Helius and Jupiter supported the initiative. Kraken's tactics are notable: the exchange began voting from a predominantly negative position but revised its decision by the end, directing over 90% of its 8.9 million SOL in support. Kraken CEO Arjun Sethi explained this by the principle of custodian neutrality, stating: "Custodians should be conduits, not voices."
Of particular interest is the activity of Helius CEO Mert Mumtaz, who personally called about 500 validators in the final hours to tip the scales. This is an unprecedented case of direct lobbying in Solana's history, underscoring how close the decision was.
Constitution adopted, fees rejected
In parallel, the community approved SGP-0001 — the "Solana Constitution," which enshrined the rules of on-chain governance (193.65 million SOL in favor). However, SGP-0003 on restructuring fees did not pass: 142.84 million in favor versus 50.15 million against, with 72.03 million abstaining. This proposal involved splitting fees into a base portion and a variable component for computational resources, with the latter being fully burned, which could have increased daily SOL burning from 650 to 7,500-9,000 coins.
My comment: The rejection of SGP-0003 is a missed opportunity. The mechanism of burning the variable portion of fees would have created a powerful deflationary loop that would have amplified the effect of accelerated disinflation. As it stands, Solana is relying solely on reducing issuance, which is a slower tool. However, the approval of SGP-0002 is a strong signal to the market that the network is ready for strict monetary discipline, which should positively impact the asset's price in the long term.