On August 28, participants in Solana's on-chain governance approved the proposal SGP-0002, which effectively doubles the annual disinflation rate from 15% to 30%. The initiative received support from 176.29 million SOL, while 66.19 million voted against it, and 20.63 million abstained.

Source: Solana Governance.

The foundation of SGP-0002 is the technical proposal SIMD-0550, developed by the infrastructure company Helius. While the ultimate inflation target remains at 1.5%, the timeframe for reaching it has been significantly reduced from 5.7 years to 2.8 years.

Authors estimate that this adjustment will decrease the supply by approximately 18.9 million SOL over six years compared to the current schedule. However, transaction fees, MEV revenues, and the block reward distribution mechanism will remain unchanged.

Yield Reduction

The accelerated reduction in supply is expected to lower the amount of SOL allocated for staking rewards. According to the calculations from SIMD-0550, the nominal yield may drop from the current 5.84% to 4.34% in the first year, followed by declines to 3% and 2.25% in the second and third years, respectively.

Helius also assessed the impact on validator economics: among 738 operators, two could transition from profitable or break-even status to unprofitable within the first year of the new schedule, with 13 in the second year and 30 in the third. The final figures will depend on future staking volumes, fees, and other network parameters.

The approval of SGP-0002 does not alter emission parameters on its own. The next step will involve implementing SIMD-0550 into the client software and subsequently updating the main network.

Disagreements

Major network participants had differing opinions regarding SGP-0002. Figment opposed the proposal, casting around 17.1 million SOL against it, while both Helius and Jupiter were in favor.

During the voting process, Kraken shifted its stance: initially, its validators voted predominantly against the proposal, but as the vote progressed, the exchange reversed its position. Ultimately, over 90% of the approximately 8.9 million SOL controlled by the exchange was cast in favor of SGP-0002.

Kraken’s co-CEO Arjun Sethi explained the exchange's position by emphasizing the neutrality of custodians.

"Custodians should be conduits, not voices," — he wrote on X.

Galaxy also adjusted its voting strategy in the final hours: initially abstaining, they later shifted some votes to support the proposal.

Helius CEO Mert Mumtaz actively encouraged large players to back SGP-0002. After the voting concluded, he noted that he had contacted about 500 validators and other ecosystem participants in the final hours.

AFTER 500 CALLS IN THE PAST FEW HOURS WE GOT ALL THE VOTES IN THE LAST SECONDS AND PASSED THE DISINFLATION PROPOSAL BY A LITERAL HAIR

THANK YOU TO EVERYONE WHO WAS OPEN TO CHANGING THEIR MIND

LETS GOOOOOOOOOOOOOO WE DID IT

SOL $1,000 https://t.co/BMEuOP912V

— mert (@mert) August 28, 2026

Other Proposals

At the same time, voting participants endorsed SGP-0001 — the "Solana Constitution," which establishes the rules for on-chain governance of the network. It received 193.65 million SOL in support, accounting for roughly 86% of the total coins that participated in the vote.

On the other hand, SGP-0003, which proposed restructuring support fees, did not gain approval. It received votes from 142.84 million SOL in favor, 50.15 million against, and 72.03 million abstentions.

This proposal aimed to split fees into a base charge for including transactions and a variable component for computational resources, which was intended to be completely burned.

According to the authors' estimates, this mechanism could increase the daily burn of SOL from approximately 650 to between 7,500 and 9,000 coins.

It is worth noting that voting on the three proposals within the Solana ecosystem commenced on August 24.