Solana approved on Friday (28) a proposal to accelerate the reduction in new SOL token issuance, in a tight vote that marked the network's first major governance test. The measure, called SGP-0002, passed with 67% support, just above the two-thirds threshold required for approval.
The result came in the final minutes of voting. About 25% of votes were against and 7.84% abstained. Turnout reached 60.7% of eligible stake, above the minimum quorum of one third. The decision was only confirmed after last-minute changes, including a vote switch by the validator Kraken 2, linked to the exchange Kraken, which represented about 2% of votes and moved from against to in favour close to the deadline.
"After 500 calls in the last few hours, we got all the votes in the final seconds and passed the disinflation proposal by literally a thread," wrote Mert Mumtaz, CEO of Helius and one of the measure's main advocates, in a post on X.
The vote follows a trend that had already been driving investor interest in recent days. As reported previously, Solana had been rising more than Bitcoin and Ethereum amid expectations of changes to the token's economics, with proposals to reduce future issuance and expand SOL burning. The approval of SGP-0002 confirms part of that thesis, even though another proposal considered important by the market fell short.
The SOL token reacted briefly near the end of the vote, but remained below Thursday's high. The cryptocurrency was trading near US$105, down 1.2% over the previous 24 hours.
Solana's first governance test
The vote was historic for the network because it marked Solana's first large-scale governance exercise. In practice, validators were able to decide directly on proposals covering both how the blockchain makes decisions and the economic rules governing the SOL token.
Alongside SGP-0002, the network comfortably approved SGP-0001, a kind of constitution for future votes. The proposal sets rules for important network decisions, including participation criteria, vote weighting and minimum thresholds for approval. It passed with 95.35% support and just 0.22% against.
The third proposal, however, did not fare as well. SGP-0003, which called for changes to transaction fees to increase the amount of SOL burned, received about 54% support, but did not reach the level required for approval.
The market thus received a mixed signal. The approval of the faster issuance cut reinforces the narrative of a scarcer Solana in the long run, potentially positive for the price of SOL. On the other hand, the rejection of the higher-burn proposal limits part of the expected impact on the token's supply.
Even so, the result shows that Solana is beginning to formalise a more robust governance process at a time when the network is trying to consolidate its growth in DeFi, stablecoins and tokenised assets. For investors, the point now will be to watch whether the change in issuance is enough to sustain interest in SOL after the recent rally — or whether the approval had already been partly priced in by the market.
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