Solana’s dual-deflation proposal enters support phase as annual deflation target is set to double

Solana’s dual-deflation proposal enters support phase as annual deflation target is set to double

N
News Editor
2026-08-04 06:08:52
Solana’s dual-deflation proposal, SGP-0002, has moved into the support phase, according to Odaily. To advance to a full governance vote, the proposal must secure 10% of active stake, equal to 43.27 million SOL. Current support stands at 27.19 million SOL, or 41.9% of that threshold. The proposal would raise Solana’s annual deflation rate from 15% to 30%. If approved, that change would shorten the time needed to reach the network’s terminal inflation rate of 1.5% from about 5.7 years to about 2.8 years. It would also reduce SOL issuance by about 18.9 million tokens over six years. The update marks a procedural step rather than final approval, with the proposal still needing to meet the active stake requirement before moving into the broader governance voting stage.

Solana’s dual-deflation proposal, SGP-0002, has entered the support phase, according to Odaily.

Under the process described in the update, the proposal needs backing from 10% of active stake, or 43.27 million SOL, before it can move to a full governance vote. Support currently stands at 27.19 million SOL, which is 41.9% of the required threshold.

The proposal would increase Solana’s annual deflation rate from 15% to 30%. If passed, it would cut the time needed to reach the network’s 1.5% terminal inflation rate from about 5.7 years to about 2.8 years, while reducing SOL issuance by about 18.9 million over six years.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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