Solana's first binding on-chain governance vote concluded dramatically on August 28, 2026, with validators approving the SGP-0002 "Double Disinflation" proposal by the narrowest of margins. The final tally showed 67.0% support, just above the required 66.67% threshold, with 176.29 million SOL voting in favor and 66.19 million SOL against across 1,326 votes, and quorum reached at 60.7% participation.
The proposal, which tracks SIMD-550 filed by infrastructure firm Helius, doubles Solana's annual disinflation rate from 15% to 30%. Under the new schedule, Solana's token issuance will decline faster and reach the fixed 1.5% inflation floor by 2029 instead of 2032. Projections suggest this will reduce the amount of SOL entering the market over the next six years by approximately 18.9 million SOL, worth roughly $1.47 billion at current prices.
The vote was not decided until the final hours. Kraken, which controls about 8.92 million SOL in voting power, initially opposed the measure and then changed its vote to support after feedback from Solana users. Kraken co-CEO Arjun Sethi said, 'Custodians should be conduits, not voices.' Galaxy Digital, which had previously abstained, also moved a significant portion of its votes to yes, providing the final push past the threshold. Helius CEO Mert Mumtaz had earlier said the proposal needed roughly 1-2% more support to pass.
Validators also ratified SGP-0001, the Solana Constitution, with 86.0% support from 193.65 million SOL in favor and 4.63 million against across 1,153 votes. However, they rejected SGP-0003, the "Resource and Inclusion Fee", which received only 53.9% support. That proposal would have split Solana transaction fees and destroyed a resource fee tied to compute use, potentially increasing daily SOL burns from about 650 SOL to as much as 9,000 SOL, a 12-to-14x jump.
Market reaction was mixed. SOL had risen about 44% on the month into the vote, but the daily candle on Coinbase opened at $109.18, hit a high of $110.14, sold off to $103.63, and closed at $105.00 — a 3.83% drop from the open. The reduced issuance is widely viewed as bullish for long-term supply dynamics, though staking yields are expected to fall from around 5.25% today to about 2.25% within three years, according to 21Shares.
