Solana has completed its first formal governance vote, and the result locked in a supply-side change for SOL. According to Decrypt’s Aug. 28 report, the community approved SIMD-0550, the proposal referred to as a “double disinflation” plan, accelerating the pace of SOL issuance reduction. SOL extended gains after the news, rising more than 8% over the past 24 hours.
SIMD-0550 clears the vote
The vote began on Aug. 22 and marked Solana’s first official governance process, with three proposals presented at the same time. The best-known of the group, SIMD-0550, met the required threshold and passed. The proposal doubles SOL’s annual disinflation rate from 15% to 30%, allowing the network’s inflation rate to reach its 1.5% terminal floor faster.
At the previous pace, that endpoint was projected for 2032. After the change, the timeline moves forward to 2029. Based on that adjustment, about 18.9 million fewer SOL are expected to be issued over the next six years. Solana’s current inflation rate is about 3.8%.
Separate burn proposal trails
A separate proposal in the same voting round, which sought to sharply raise the daily burn amount from about $47,000, trailed in the vote count.
SOL posts its best month since 2024
Expectations around the governance change, together with broader market momentum, helped drive a strong move in SOL. On-chain data cited in the report showed SOL up more than 8% in 24 hours and about 44% since the start of August. The token traded above $105, its strongest monthly showing since 2024.
For SOL holders, lower issuance means slower dilution from new supply, which the market has read as a structurally bullish adjustment. Whether that disinflation shift becomes long-term price support will still depend on actual network usage and demand.