Solana Sgp-0002 Double Disinflation Vote — Solana validators closed the network’s first binding on-chain governance vote on Thursday, approving SGP-0002 — the double disinflation proposal — with 67.0% of participating stake in favor. The result was narrower than expected: 176.29 million SOL backed the measure against 66.19 million SOL opposed, on 1,326 votes, with 60.7% quorum. The ballot, run through the new Solana Governance Proposal system, bundled three measures, and the economic proposal only cleared the two-thirds threshold after a last-minute reversal from cryptocurrency exchange Kraken.
How the Solana SGP-0002 Double Disinflation Vote Unfolded
The package tracked SIMD-550, filed by engineers at infrastructure firm Helius, and doubled Solana’s annual disinflation rate from 15% to 30%. Solana’s inflation already declines each year on its path to a 1.5% fixed floor; the change pulls that floor forward from 2032 to 2029, reducing cumulative new supply by roughly 18.9 million SOL over six years. Helius CEO Mert Mumtaz lobbied validators publicly in the days before the vote, including direct outreach to large staking providers that had initially opposed the proposal.
Before the reversal, the outcome looked uncertain. With 67.0% against a 66.67% requirement, a few million SOL of voting weight determined whether SGP-0002 passed or failed. Kraken, whose voting power stood at 8.92 million SOL, voted against the measure through most of the count before switching sides in the closing stretch.
Numbers Behind the Ballot: Quorum, Stake, and Timing
The governance system required two-thirds support among participating stake, plus a quorum floor. SGP-0002 cleared both, finishing at 67.0% in favor on 60.7% participation — the tightest of the three proposals on the slate. The other governance item, SGP-0001 formalizing the Solana Constitution, passed easily with 86.0% support from 193.65 million SOL, against 4.63 million SOL, across 1,153 votes and 52.0% quorum.
SGP-0003, the Resource and Inclusion Fee, did not clear. It landed at 53.9% in favor — 142.84 million SOL for against 50.15 million SOL against — with 72.03 million SOL abstaining. The two-thirds threshold was out of reach. The proposal, tracking SIMD-553 from R&D firm Temporal, would have split Solana’s transaction fee into a base inclusion payment to validators and a new resource fee tied to compute use, which would have been burned. Daily SOL burns could have risen from roughly 650 SOL (about $48,000) to as much as 9,000 SOL (around $668,000), a 12-to-14x jump. The change had already cleared code review from Solana’s two client teams, Anza and Firedancer, on July 20; the vote determined activation, not readiness.
What SGP-0002 Double Disinflation Vote Changes for SOL Supply
The core effect of SGP-0002 is mechanical. Annual issuance shrink rises from 15% to 30%, accelerating Solana’s path to a 1.5% terminal inflation rate by 2029. Investors holding SOL through the change stand to see fewer new tokens enter circulation each year, and roughly 18.9 million fewer SOL issued over the next six years. If demand holds steady or grows, that supply reduction is the kind of setup traders typically read as price-supportive.
The downside sits with stakers. Inflation rewards are what fund validator economics, and the cut pulls expected staking yield from around 5.25% today down to roughly 2.25% within three years, according to 21Shares. That trade-off framed the debate in the days before the ballot closed and shaped how several large custodial and treasury players voted.
Kraken’s Reversal and the Other Proposals on the Ballot
Kraken’s Co-CEO Arjun Sethi defended the exchange’s position in a public exchange with Mumtaz, writing that “custodians should be conduits, not voices.” The exchange had voted against SGP-0002 through most of the count before reversing in the final hour, a shift Mumtaz acknowledged once the change was confirmed. Galaxy initially abstained — a stance that functions as a no vote under the system’s weighting — before also switching before the close. The two flip-flops were the difference between a pass and a fail.
Corporate stakers split differently. Solana Company, the Nasdaq-listed treasury firm trading as HSDT, supported the constitution but opposed both economic measures, citing timing concerns for institutional stakers seeking predictable yield. DeFi Development Corp voted yes on all three proposals and disclosed the purchase of 19,000 SOL for $1.86 million shortly after the results were tallied. The Solana SGP-0002 double disinflation vote outcome is expected to reshape the broader landscape.
SOL had entered the vote up roughly 44% for the month, its strongest August since 2024. The Aug. 28 daily candle on Coinbase opened at $109.18, hit a high of $110.14, then sold off to a low of $103.63 before closing at $105.00 — a 3.83% drop from the open and about 5.4% off the recent swing high near $111. The reversal in price came as SGP-0003, the resource fee, failed to clear, even as SGP-0002 passed. With the Solana SGP-0002 double disinflation vote now formally binding, attention shifts to how the issuance schedule is implemented in upcoming validator client releases and how staking providers recalibrate yield projections for institutional delegators.