Solana Governance Approves Faster Inflation Cuts After 67% Validator Vote

MakeCryippreferred on

Solana validators have approved a plan to double the network’s annual disinflation rate, from 15% to 30% a year, clearing the two-thirds support threshold required for the change to take effect.

The measure, SGP-0002, passed with 67.00% of votes cast in favor against a 66.67% requirement, a margin of 0.33 percentage points.

The Number Still Being Cited Is Wrong

Several accounts of this week’s vote describe SGP-0002 as eliminating 22.3 million SOL in future issuance. That figure belongs to a different, earlier draft of the same idea that never reached a vote.

The version validators actually approved, implemented through SIMD-0550, is projected to cut six-year issuance by 18.9 million SOL, worth roughly $1.5 billion at the prices used in that estimate.

A Proposal That Took Three Tries

SGP-0002 is the third attempt at this exact change. An earlier version, SIMD-0228, went to a community vote in March 2025 and failed.

A second attempt, SIMD-0411, submitted that November, sat inactive until it auto-closed in January 2026 without a vote. That is the draft the 22.3 million figure above actually belongs to.

Solana’s SGP-0002 submission reopened the idea in July 2026, this time reaching Solana’s first binding on-chain governance vote alongside two other proposals: a Solana Constitution, which passed, and a resource-and-inclusion fee change, which was trailing short of its own two-thirds threshold as the window closed.

How Kraken and Galaxy Flipped a Losing Vote

SGP-0002 was short of the threshold for most of the voting window. It only crossed in the final hours, once two large validators changed their ballots.

Kraken’s largest validator, holding about 8.92 million SOL, had voted entirely against the measure. It reallocated to roughly 90% in favor before the deadline.

Galaxy’s roughly 7.36 million SOL ballot moved from about 92% abstaining to 58% in favor, according to an account from investor Austin Barack. The change happened at 15:18 UTC and shifted an estimated 4.2 million SOL into the For column, more than the margin still needed to pass.

Mert Mumtaz, chief executive of Helius, the infrastructure firm whose engineers wrote the proposal, said the margin came down to a literal hair and that roughly 500 calls brought in votes in the final seconds. Mumtaz’s own firm co-authored the measure he was praising, a conflict of interest worth noting alongside his account of the vote.

SIMD-0550 Still Needs to Be Activated On-Chain

Passage does not put the new rate into effect immediately. Solana’s core inflation parameters change through a separate technical feature-gate activation, the same process used for other protocol-level updates, before validators begin running the doubled disinflation schedule.