Solana Opens Vote to Double Disinflation, Cutting 18.9M SOL From Future Issuance

TLDR:

• The proposal could cut projected six-year SOL supply by 18.9M tokens, equal to about $1.81B at $95.70.
• Modeled staking yields could fall from 5.84% now to 4.34% after one year and 2.25% after three years.
• SGP-0002 needs one-third stake participation and two-thirds support, making it an early governance test.
• A 30% disinflation rate could bring Solana to its 1.5% inflation floor in 2029 instead of around 2032.

Solana has opened an on-chain vote on SGP-0002, putting a token issuance change before validators and stakers. The proposal would double annual disinflation from 15% to 30%, accelerating how quickly new SOL issuance declines without changing the network’s 1.5% inflation floor.

The vote is active under the network’s new stake-weighted governance framework, where validators and native stakers signal support or opposition. Delegators can override their validator’s choice, giving stakers a direct role in the outcome. The decision therefore combines monetary policy with an early governance test.

Solana Vote Puts 18.9M SOL Issuance Cut Before Stakers

SGP-0002 is linked to SIMD-0550, authored by Lostin and 0xIchigo of Helius. Their June model placed the inflation rate at 3.82% under the existing schedule. At the current 15% annual disinflation rate, inflation would fall to about 3.24% after one year, reaching the 1.5% floor around the first half of 2032.

Source: X

However, the proposed 30% schedule would move faster. Inflation would decline to roughly 2.86% after one year and reach the same floor around early 2029. That acceleration would reduce cumulative issuance. The model projects total supply of 708.54 million SOL after six years, versus 727.43 million under the current schedule.

The 18.9 million-token difference equals about 2.6% of projected supply. At $95.70 per SOL on Aug. 23, that amount is worth about $1.81 billion. Nonetheless, the proposal does not immediately halve inflation. It only doubles the pace at which the inflation rate declines toward the unchanged long-term floor.

Lower issuance would also reduce staking rewards. At 68% modeled staking participation, nominal yield would fall from about 5.84% currently to 4.34% after one year. The model then places staking yield near 3.00% after two years and 2.25% after three years. Those figures exclude commissions, MEV, and block-related revenue.

Validator economics also weaken gradually. Among 738 validators, two additional operators become unprofitable or move from breakeven after one year. That number rises to 13 after two years and 30 after three years. Still, the authors modeled the overall validator impact as relatively limited.

Lower Staking Yields Put Validator Economics in Focus

The economics have already drawn institutional opposition. Nasdaq-listed Solana Company said Aug. 21 that it would vote against SGP-0002. The company supports lower issuance as a long-term goal. However, it argued that changing established economics during the first governance cycle could reduce institutional predictability.

The vote also follows the failed SIMD-228 debate in 2025. That proposal sought dynamic issuance tied to staking participation rather than the existing fixed schedule. About 74% of staked SOL participated. However, only 61.4% of non-abstaining votes supported the proposal, below the required two-thirds threshold.

Under the new SGP process, at least one-third of network stake must participate. Two-thirds of participating stake must then vote in favor for passage. SGP-0002 therefore places two questions before the network. One concerns how quickly SOL dilution should decline, while the other tests whether governance can produce decisive consensus.

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