Solana validators approved SGP-0002, a proposal that doubles the rate of SOL emission declines. It is the first measure to pass under the network’s new onchain governance system and the first time validators have agreed to reduce issuance.
According to the Solana validator governance site, the proposal closed on Friday with 176.29 million SOL voting for, 66.19 million against, and 20.63 million abstaining. Excluding abstentions, support reached 72.7%, clearing the two-thirds supermajority required under the governance rules.
Turnout reached 60.70% of the 433.49 million SOL snapshot, above the one-third quorum threshold, with 1,326 voters taking part. The proposal is now marked finalized and ready for onchain execution.
Kraken changed course near the end of voting
The result tightened late. Six hours before the vote closed, support accounted for 65.4% of for-and-against stake, below the threshold and pointing to failure at that stage.
Kraken’s larger validator, which held 8,917,576 SOL, had voted 100% against on Friday morning. At 10:37 UTC, it re-cast its vote as 90.34% for and 9.66% against, shifting roughly 8.1 million SOL. Kraken’s smaller validator, with 3,310,547 SOL, remained 100% against.
Galaxy also changed its position, re-casting at 11:18 from 92% abstain to 58.36% for. Roughly 90 additional voters submitted ballots in the final hour.
The report notes that Kraken’s reversal alone did not decide the outcome. Had it kept its original vote, support still would have finished at 69.4%, which remained above the threshold.
Annual disinflation rate rises to 30%
SGP-0002 lifts Solana’s annual disinflation rate from 15% to 30%, accelerating the network’s path to a 1.5% terminal inflation floor. Solana’s annual inflation rate stood at 3.82% in June 2026.
The proposal was authored by Lostin and 0xIchigo of RPC provider Helius. Their estimate says the change would remove about 18.9 million SOL from emissions over six years and bring Solana to terminal inflation in the first half of 2029 rather than 2032. At SOL’s current price, that amounts to roughly $2 billion in issuance.
An SGP is a directional mandate, not a technical specification. The change now moves to SIMD-0550, which would implement it through Solana’s feature-gate process.
Staking yield takes the hit
The tradeoff falls on staking returns. Under the proposal’s own projections, first-year staking yields would be 4.34% under the faster schedule versus 4.93% under the current one. By year three, yields would fall to 2.25% compared with 3.52% under the existing schedule.
The proposal also estimates that two validators would become unprofitable in year one, rising to 30 by year three.
That math shaped the opposition. Staking infrastructure firms led the no camp. Figment voted 17.07 million SOL against, and its Ledger by Figment validator added another 9.18 million SOL against. Everstake voted 7.96 million SOL against.
On the other side, Helius cast 16.05 million SOL, with 99.5% in favor. Jupiter voted 11.78 million SOL for. Forward Industries, described as the SOL treasury company, backed the measure with its 6 million SOL stake.
Institutional criticism focused on predictability
Solana Company, the treasury vehicle trading as HSDT, said on Aug. 21 that it would vote against SGP-0002 and the companion fee proposal while supporting the constitution draft. CEO Joseph Chee said institutions 「make decisions based on consistent, predictable structures」 and said the company objected to reopening what it described as a settled, deterministic issuance schedule during the first governance cycle.
Hours before Kraken changed its vote, Helius CEO Mert Mumtaz criticized late no votes on X. He wrote: 「It seems that many people randomly voted no for Solana disinflation velocity at last second instead of having any discussion under a false facade of thinking it somehow preserves extra revenue through yield for them.」 He added: 「It is mathematically nonsense to vote no to preserve miniscule marginal inflation revenue unless you believe that inflation is less than a 1% factor in the valuation of an asset.」
Another attempt after a prior rejection
Validators rejected a similar effort last year. In March 2025, the community voted down SIMD-228, a market-based emissions curve proposal that failed to reach a supermajority after the same split between large staking operators and ecosystem developers. Solana’s leadership was also divided on that proposal.
This vote became the first real test of the governance system Solana launched this year.
Two other proposals also finalized
Two additional measures closed in the same voting window. SGP-0001, the draft Solana Constitution, finished with 85.97% support, 2.06% opposition, and 51.96% participation.
SGP-0003, which would split the flat 5,000-lamport transaction fee into an inclusion fee for block leaders and a burned resource fee, ended with 53.90% for, 18.92% against, and 27.18% abstaining on 61.14% participation.
SOL traded at $106.62 on Friday
According to CoinGecko, SOL traded at $106.62 on Friday, up 2.3% over 24 hours and 15.9% over the week.