On August 28, participants in the on-chain vote for Solana approved proposal SGP‑0002, which doubles the annual disinflation rate from 15% to 30%. The initiative received 176.29 million SOL in favor, 66.19 million against, and 20.63 million abstentions.
SGP‑0002 is based on the technical proposal SIMD-0550, prepared by infrastructure company Helius. The ultimate inflation target of 1.5% remains unchanged, but the timeline to achieve it is reduced from 5.7 to 2.8 years.
According to the authors, this will reduce issuance by approximately 18.9 million SOL over six years compared to the current schedule. Fees, MEV income, and the block reward distribution mechanism will remain unchanged.
Yield Reduction
The accelerated reduction in issuance will decrease the amount of SOL allocated for staking rewards. According to SIMD-0550 authors, nominal yields could drop from the current 5.84% to 4.34% in the first year, then to 3% and 2.25% in the second and third years, respectively.
Helius also analyzed the impact on validator economics: out of 738 operators, two may shift from profitable or break-even to unprofitable in the first year of the new schedule, 13 in the second year, and 30 in the third. Final figures depend on future staking volumes, fees, and other network parameters.
Approval of SGP‑0002 does not itself change issuance parameters. The next step is to implement SIMD‑0550 in client software and subsequently update the mainnet.
Disagreements
Major network participants were divided on SGP‑0002. Figment opposed it, casting about 17.1 million SOL against, while Helius and Jupiter supported the initiative.
Kraken changed its stance during the vote: initially, its validators cast most votes against, but near the end, the exchange reversed its decision. Ultimately, over 90% of the approximately 8.9 million SOL controlled by the platform supported SGP‑0002.
Kraken co-director Arjun Sethi explained the exchange’s position with the principle of custodian neutrality.
“Custodians should be conduits, not voices,” he wrote on X.
Galaxy also adjusted its strategy in the final hours: initially abstaining, it later shifted some votes in support.
Helius CEO Mert Mumtaz actively lobbied major players to support SGP‑0002. After the vote, he reported contacting about 500 validators and other ecosystem participants in the final hours.
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
THANK YOU TO EVERYONE WHO WAS OPEN TO CHANGING THEIR MIND
LETS GOOOOOOOOOOOOOO WE DID IT
SOL $1,000 https://t.co/BMEuOP912V
— mert (@mert) August 28, 2026
Other Proposals
Simultaneously, voters supported SGP-0001 — the “Solana Constitution,” which establishes on-chain governance rules for the network. It received 193.65 million SOL in favor, about 86% of the total coins participating in the vote.
SGP-0003 on restructuring fees did not receive support. The initiative garnered 142.84 million SOL in favor, 50.15 million against, and 72.03 million abstentions.
The proposal aimed to split fees into a base part for transaction inclusion and a variable component for computational resources, which was to be entirely burned.
According to the authors, the mechanism could increase daily SOL burning from approximately 650 to 7,500-9,000 coins.
Voting on the three proposals in the Solana ecosystem began on August 24.
