Solana was one of the strongest large-cap crypto assets in Decrypt’s Aug. 28 Morning Minute, with SOL back above $105 for the first time since January and up roughly 44% in August. The move came alongside the first binding on-chain governance vote in Solana’s history, where three proposals reached quorum and all passed. The most closely watched measure, SGP-0002, doubles Solana’s disinflation rate from 15% to 30%, bringing the network to its 1.5% inflation floor by 2029 instead of 2032 and cutting about 18.9 million SOL from the projected issuance schedule. Another proposal, SGP-0003, splits fees into a validator-paid base fee and a resource fee tied to compute usage that is burned, potentially lifting daily burns from about 650 SOL to as much as 9,000 SOL. Institutional views were split. Solana Company, trading on Nasdaq as HSDT, supported the constitution but opposed the two economic changes, while DeFi Development Corp backed all three proposals and bought 19,000 SOL for $1.86 million. The report also pointed to a demand-side catalyst after Charles Schwab said it plans to add SOL, AVAX and LINK to Schwab Crypto.

Solana’s first-ever on-chain governance vote has produced a split result on three governance proposals that could shape the future supply of SOL. SGP-0001, the charter proposal, passed with 95.35% support. SGP-0002, which accelerates the decline in SOL inflation, cleared the two-thirds threshold with 68.77% support and a 47.72% participation rate. SGP-0003, a proposal to expand fee burning, fell short at 62.72% despite reaching quorum. Under Solana’s governance rules, at least one-third of network staking must participate, and proposals need support from two-thirds of participating votes. Abstentions count toward participation but not toward support, making them a major factor in the outcome. That proved critical for SGP-0003, which posted a 20.75% abstention rate. If implemented, SGP-0002 would raise the annual reduction rate in new SOL issuance from 15% to 30%, moving the date for reaching the 1.5% floor from 2032 to 2029 and reducing issuance by an estimated 18.9 million SOL between 2029 and 2035. SGP-0003 would have increased daily SOL burned from about 650 to 7,500-9,000 SOL, or as much as $800,000 a day at recent prices. Solana Company, listed on Nasdaq under HSDT, said on Aug. 21 that it supported SGP-0001 but opposed SGP-0002 and SGP-0003.

SOL touched $109 on Aug. 27, its highest level of 2026, the same day Solana’s first formal onchain governance vote closed and three proposals moved into the counting stage. If all three pass, the network’s annual issuance schedule would decline faster and daily SOL burns could rise from about 650 to 7,500-9,000. The proposals are aimed at fixing a mismatch that has become central to the Solana debate: strong network usage, but limited value capture for SOL holders at the protocol layer. Backers including Helius, Jupiter and Jito have lined up behind the package, while opponents such as Nasdaq-listed Solana Company argue that changing staking yields and fee mechanics too quickly could complicate institutional adoption and hurt validator economics. The vote also revives an older argument inside the ecosystem over whether validators, who often depend heavily on staking income, can impartially vote on measures that may cut that revenue. Even if the proposals pass, the changes would still require later SIMD implementation, testing and onchain activation before taking effect.

Solana’s first formal on-chain governance vote closed on Aug. 27, with three proposals now in the counting stage and each aimed at changing how value flows through the network. If all three pass, SOL’s issuance decline would speed up and daily token burn could jump from about 650 SOL to between 7,500 and 9,000 SOL, according to the figures cited in the source material. The debate comes as Solana posts strong operating metrics. The network processed 25.3 billion transactions in the first quarter of 2026, held the top spot in spot DEX market share for seven straight quarters at about 30%, and had gone more than 90 days without downtime. At the same time, critics argue those gains have not translated into enough protocol-level value capture for SOL holders. The three proposals cover a formal governance framework, a faster disinflation schedule, and a redesign of base transaction fees. Supporters including Helius, Jupiter, and Jito have backed the measures, while opponents such as Nasdaq-listed Solana Company have argued that changing staking yields and transaction costs too quickly could complicate institutional adoption. The dispute also exposes tensions around validator incentives, delegated voting power, and the balance between tokenholder returns and decentralization.

Solana’s dual-deflation proposal, SGP-0002, has reached the quorum threshold, according to Odaily. Current voter participation stands at 47.26%, with 68.56% of votes cast in favor, and roughly 13 hours remaining before the vote closes. The proposal seeks to raise Solana’s annual deflation rate from 15% to 30%. If adopted, the time needed to reach the network’s terminal inflation rate of 1.5% would be shortened from about 5.7 years to about 2.8 years. The proposal also estimates that new SOL issuance could be reduced by about 18.9 million tokens over the next six years. The update reflects the latest vote count and participation level at the time of publication.

SOL rose more than 8% over the past 24 hours and is up about 44% for the month, marking its strongest monthly performance of 2024 so far, with the token climbing back above $105. The move came as Solana’s first binding on-chain governance vote entered its closing stage, with traders this week pricing in expectations of tighter future supply. The vote includes three Solana Governance Proposals, or SGPs: SGP-1 to approve a Solana constitution and formally establish future on-chain voting procedures; SGP-2, also known as SIMD-550, proposed by a Helius engineer, to double the disinflation rate from 15% to 30%, bringing the inflation schedule to its 1.5% floor by 2029 and cutting roughly 18.9 million SOL in issuance over the next six years; and SGP-3, or SIMD-553, proposed by Temporal, to split transaction fees into a base inclusion fee and a resource fee, with the latter burned directly. The two economic proposals each require a two-thirds absolute majority of participating stake weight to pass.

Solana’s native token SOL rose more than 8% over the past 24 hours and was on track for its strongest month since 2024, up roughly 44% since the start of August and back above $105 for the first time since January. The move came as Solana validators approached the end of a major governance vote that could change how the network manages token supply. The vote, set to close around 15:30 UTC at the end of epoch 1023, covers three Solana Governance Proposals, or SGPs, under a new on-chain system that gives validators and SOL delegators binding, stake-weighted voting rights for the first time. One proposal would ratify a Solana Constitution. The other two, SIMD-550 and SIMD-553, focus on token issuance and burn mechanics. SIMD-550 would double Solana’s disinflation rate from 15% to 30%, bringing the network to its 1.5% inflation floor by 2029 instead of 2032 and reducing issuance by about 18.9 million SOL over six years. SIMD-553 would split transaction fees into an inclusion fee paid to validators and a resource fee that would be burned, potentially lifting daily burn from about 650 SOL to as much as 9,000 SOL. Both proposals require a two-thirds supermajority of participating stake, and results are expected within hours after voting ends.

Solana validators have started voting on governance proposal SGP-0003, a measure that would change part of the network’s fee structure and could sharply raise the amount of SOL burned each day. The vote opened on Aug. 23 and is set to run through Epoch 1023, which is expected to end on Aug. 27. Under the proposal, the current fixed fee model applied to affected resources would be replaced by a variable transaction fee based on resource consumption, and that fee would be burned in full. If approved, estimated daily SOL burn would increase from roughly 650 SOL to a range of 7,500 to 9,000 SOL. The proposal has not taken effect yet, and the report noted that SOL has not become deflationary as a result, with the network’s supply dynamics unchanged for now. Techub News reported the update, citing Bitcoinist.