Solana validators narrowly approved Solana Governance Proposal 0002 (SGP-0002), marking the network’s first vote on a proposal of this type.
Solana inflation reduction proposal passes by a slim margin
Known as Double Disinflation, SGP-0002 seeks to reduce Solana’s inflation schedule by increasing the disinflation rate from the current -15% to 30%.
The proposal appeared unlikely to pass just hours before voting ended. It ultimately received support from validators representing 176.29 million $SOL, or 67% of the vote. Validators representing 66.19 million $SOL, or 25.16%, voted against the proposal, while 20.63 million $SOL, or 7.84%, abstained.
Mert Mumtaz, co-founder and CEO of Solana-focused service provider and validator Helius, initially warned that the proposal would fail. He criticized validators who were randomly voting against it “under a false facade of thinking it somehow preserves extra revenue through yield for them.”
Mumtaz described that reasoning as “mathematically nonsense,” declaring that “the people who prefer the quantity of the asset vs the value of it should immediately move to Venezuela and let other $SOL holders know how that works out.”
Validators raise concerns over the pace of change
Not all validators opposed the proposed inflation change for the same reason. Everstake said it voted against the proposal because of “the pace of the proposed change, the disproportionate impact it could have on smaller validators, the pressure it may put on staking participation and delegators, and the downside scenarios that remain unaddressed.”
Despite the opposition, Mumtaz’s campaign prompted Kraken to change its position and vote in favor of SGP-0002. The shift helped the proposal pass by a narrow margin.
“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,” Mumtaz said.
Other Solana governance proposals receive mixed results
The two other proposals put to a vote produced mixed outcomes. The Solana Constitution proposal, SGP-0001, passed comfortably, while SGP-0003, titled “Resource and Inclusion Fee,” failed.
The rejection means Solana will not implement the proposed transaction fee model, which included a burn percentage.
