Solana governance has approved a rapid reduction in SOL issuance

Solana validators approved a proposal to double the network’s annual deflation rate, reducing future SOL issuance.

According to the final vote resultThe proposal received 67% support, 25.16% voted against and 7.84% abstained. Overall participation reached 60.7% of the eligible segment.

The proposal, known as SGP-0002 or Double Disinflation, increases Solana’s annual disinflation rate from 15% to 30%, while leaving the network’s long-term inflation target unchanged at 1.5%.

Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in 2.8 years, compared to roughly 5.7 years under the previous schedule, Solana Compass Report. This change will result in an estimated 18.9 million fewer SOLs being issued over the next six years, reducing SOL holders but also reducing stocking awards for validators and representatives.

SGP-0002 passed with 67% support and 60.7% participation. Source: Solana rule

The vote was part of Solana’s first binding governance process, which also approved a proposed Solana constitution while rejecting a separate proposal regarding resources and incorporation fees.

Some of the largest participants were randomized to SGP-0002. Figment, the largest voter shown in the final governance data with 17.1 million SOL stakes, voted against the measure entirely, while Helias and Jupiter overwhelmingly supported it.

Among those whose location was the Kraken transferred Voting time. The US-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold. At the end of the vote, more than 90% of its approximately 8.9 million SOL voting stakes supported the proposal.

Top voter split in SGP-0002. Source: Solana rule

Related: Solana transactions hit record 4.2B as SOL rally 40%

Solana ETF assets exceed $1 billion

The governance vote comes as US-listed Solana Investment Products attracted capital from investors despite SOL’s poor performance earlier this year.

Bitwise’s Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach the milestone, according to an X post by Bloomberg ETF analyst Eric Balchunas on Friday.

U.S. Solana ETFs have attracted about $1.7 billion in cumulative net inflows, with very few sustained outflows since their launch, Balchunas said Friday.