The Solana ecosystem has made a historic decision: an on-chain vote approved proposal SGP-0002, which doubles the annual disinflation rate — from 15% to 30%. The results of the plebiscite are impressive: 176.29 million SOL — "in favor," 66.19 million — "against," 20.63 million — abstained. This is not just a parameter adjustment, but a signal of the network's maturity, ready to move faster toward token scarcity.
At the core of the initiative lies the technical document SIMD-0550, prepared by the infrastructure company Helius. The key goal — a target inflation rate of 1.5% — remains unchanged, but the timeline to achieve it is reduced from 5.7 to 2.8 years. In my estimation, this radically changes staking economics: issuance will be reduced by approximately 18.9 million SOL over six years compared to the previous schedule. At the same time, fees, MEV revenues, and block reward distribution mechanisms remain untouched.
Yields Under Pressure
The accelerated reduction in issuance will inevitably hit stakers' yields. According to calculations by the authors of SIMD-0550, nominal yields could decline 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 is a serious stress test for validators: out of 738 operators, according to my data, two could become unprofitable in the first year, 13 in the second, and 30 in the third. However, the final figures depend on staking volume and fee flows.
It is important to understand: approval of SGP-0002 is only the first step. Actual changes will take effect only after SIMD-0550 is implemented in client software and the mainnet is updated. This is a technical process that will require coordination among development teams.
The Battle of Votes
The vote revealed a split among major players. Figment opposed the initiative, deploying 17.1 million SOL, while Helius and Jupiter supported it. Kraken and Galaxy radically changed their tactics in the final hours: Kraken moved over 90% of its 8.9 million SOL in favor, and Galaxy shifted from abstention to approval. Helius CEO Mert Mumtaz personally called about 500 validators, which decided the outcome. This is a reminder: in on-chain governance, it is not only algorithms that decide, but also negotiations.
Context: Constitution and Fees
In parallel, the community approved SGP-0001 — the "Solana Constitution," which enshrined the rules of on-chain governance (86% support). However, SGP-0003 on fee restructuring failed: 142.84 million "in favor," 50.15 million "against," 72.03 million abstained. The initiative proposed splitting fees into a base component and a variable one, with the latter being fully burned, which could have increased daily SOL destruction from 650 to 7,500-9,000 coins. Rejecting this mechanism is a missed opportunity to strengthen deflationary pressure, but the community likely deemed the risks to UX too high.
My verdict: accelerating disinflation is a bullish signal for SOL's long-term value, but the short-term effect for stakers will be painful. The network is betting on scarcity rather than yield — and this is the right step for attracting institutional capital.