Short answer: On August 28, 2026, Solana validators approved SGP-0002, a proposal to double the network's annual disinflation rate from 15% to 30%, with 67.001% of the vote against a two-thirds threshold. Once implemented, SOL inflation will reach its 1.5% floor around 2029 instead of 2032, cutting projected issuance by about 18.9 million SOL over six years.
What happened
The Solana governance round closed at the end of epoch 1024, at 19:45 UTC on August 28, 2026. SGP-0002, known as "double disinflation", passed with 67.001% support — only 0.334 percentage points above the required 66.667%. According to Solana Compass, about 176.3 million SOL voted for, 66.2 million against and 20.6 million abstained.
Turnout was the highest in Solana's governance history: 60.7% of the 433.49 million SOL eligible under the snapshot took part, across 1,326 validators. Two other proposals were decided in the same round:
- SGP-0001, a Solana constitution setting out how governance works, passed with about 86%.
- SGP-0003, a fee-burn mechanism, failed with 53.9% — above quorum but short of two-thirds.
How the Solana disinflation vote was decided in the final hours
The result was in doubt until the end. Kraken, one of the largest validators, moved its roughly 8.9 million delegated SOL from support to opposition hours before the close, pushing approval below the threshold. Seventy minutes before the deadline the proposal was reportedly failing by about 58 million SOL.
Two things turned it around. First, holders of JitoSOL, one of the largest liquid staking tokens on Solana, used an override mechanism that let them vote directly instead of following their validators; analysts said the proposal would have failed without it. Second, Kraken switched about 8.1 million SOL back to support at the last moment, with co-CEO Arjun Sethi arguing that custodians should pass on their users' wishes rather than impose their own. Helius chief executive Mert Mumtaz, whose team co-authored the proposal, said it passed "by a literal hair".
What changes for SOL inflation and staking yields
Solana's inflation schedule started at 8% a year in 2021 and has been falling by 15% annually toward a long-term floor of 1.5%. SGP-0002 doubles that rate of decline. Disinflation, in this context, means the pace at which new token issuance shrinks each year.
| Parameter | Before SGP-0002 | After SGP-0002 |
|---|---|---|
| Annual disinflation rate | 15% | 30% |
| Terminal inflation | 1.5% | 1.5% (unchanged) |
| Year the floor is reached | About 2032 | About 2029 |
| SOL issued over six years | Baseline | About 18.9 million fewer |
| Estimated staking yield in year three | About 5.25% today | About 2.25% |
Nothing changes immediately. The vote is a mandate, not a code change: the new curve is implemented through a technical proposal, SIMD-0550, which client teams must ship and validators must activate through a feature gate. No activation date has been set.
Supporters argue that Solana is mature enough to secure itself with less new issuance, and that lower dilution makes SOL a stronger asset. Opponents warn that smaller validators will feel the squeeze first; Galaxy Research estimated that around 30 validators could become unprofitable within three years, which could push stake toward the largest operators.
What it means for you
If you hold SOL, the direct effect is slower supply growth and, over time, lower staking rewards. Practical points:
- Expect lower yields, not higher prices. Reduced issuance lowers dilution, but it is not a guarantee of price appreciation. Treat any claim otherwise as speculation.
- Review your validator choice. The vote showed how much power large operators and custodians hold. If you stake, check how your validator voted and its commission.
- Liquid staking tokens now carry governance weight. The JitoSOL override proved that holders of such tokens can influence outcomes directly.
- Watch SIMD-0550. The real change arrives only with activation; until then current reward rates apply.
For a wider view of how the network works, see our Solana network guide.
Key takeaways
- SGP-0002 passed on August 28, 2026, with 67.001% support against a 66.667% threshold.
- Solana's disinflation rate doubles from 15% to 30%; the 1.5% floor arrives around 2029.
- Projected issuance falls by about 18.9 million SOL over six years.
- A JitoSOL override and a last-minute Kraken reversal decided the vote; the fee-burn proposal SGP-0003 failed.
- The change takes effect only after SIMD-0550 is shipped and activated.
If you want to move between SOL and other assets, you can compare the available exchange pairs and the rate you would receive before creating an order.
Sources: Solana Compass, Bankless, P2P.org, FXStreet
Frequently asked questions
What is Solana SGP-0002?
SGP-0002 is a Solana governance proposal that doubles the annual disinflation rate of SOL issuance from 15% to 30%. Validators approved it on August 28, 2026, with 67.001% of the vote.
When will Solana inflation reach 1.5%?
Under SGP-0002, Solana inflation is projected to reach its 1.5% floor around 2029 instead of about 2032, once the implementing change SIMD-0550 is activated on the network.
Will Solana staking rewards go down?
Yes, gradually. With less new SOL issued, the inflation-based part of staking rewards shrinks; Solana Compass estimates yields falling from about 5.25% to about 2.25% by the third year.
