Solana Validators Back Faster Disinflation Plan as $800K Burn Proposal Falls Behind

All three Solana governance proposals have surpassed the required quorum, but the vote on reducing new SOL issuance remains narrowly above the approval threshold, while a separate proposal to significantly increase token burns is still short of the two-thirds support required.

Solana validators and network participants are considering two different approaches to limiting the future growth of SOL’s supply. One proposal would reduce the number of new tokens issued, while another would increase the amount of SOL permanently removed through transaction fees. The first is currently passing by a slim margin, while the second has yet to secure enough support.

Solana regularly issues new SOL to compensate the operators responsible for securing the blockchain. Both proposals are designed to slow overall supply growth, which could benefit existing holders by reducing the dilution caused by newly created tokens.

The votes represent Solana’s first formal onchain governance process, giving validators and stakers a direct role in deciding significant changes to the network’s economic and technical framework.

One proposal would introduce transaction pricing based on the amount of computing resources required. It would then burn the portion of fees associated with that computational demand. If adopted, daily SOL burns could rise from approximately 650 SOL to between 7,500 and 9,000 SOL.

Based on SOL prices this week, burning 9,000 tokens per day would represent roughly $800,000 in value. However, previous CoinDesk analysis noted that even at that rate, the network would still be creating substantially more SOL than it destroys, with approximately 60,000 new tokens currently issued each day.

Solana Governance Voting Requirements

Each proposal needs participation representing at least one-third of the network’s total stake, followed by approval from two-thirds of the stake that participates. Abstentions count toward participation, helping proposals satisfy quorum, but they do not contribute toward the two-thirds approval requirement.

According to Solana’s governance data, all three proposals had met the quorum requirement by Friday.

What the Solana Proposals Would Change

The first proposal, known as SGP-0001 or the network’s “constitution,” has received overwhelming support. It establishes the framework for Solana governance, including voter eligibility, voting weights and the requirements needed for proposals to pass. It currently has 95.35% support, with only 0.22% voting against it.

SGP-0002 is passing, but only narrowly. The proposal would accelerate Solana’s disinflation schedule by cutting the annual rate of new SOL issuance by 30%, compared with the existing 15% reduction rate.

The proposal currently has 68.77% support, with participation at 47.72%. If approved, Solana’s annual issuance rate would reach its long-term minimum of 1.5% around 2029 rather than 2032.

The faster reduction in issuance would result in approximately 18.9 million fewer SOL entering circulation over a six-year period.

SGP-0003 has attracted less support. The proposal would modify Solana’s transaction-fee structure and substantially increase the amount of SOL burned. It currently has 62.72% support, while 16.52% oppose it and 20.75% abstain. With participation at 42.51%, the proposal remains below the 66.67% approval level required for passage.

A notable feature of SGP-0003 is its relatively high abstention rate. Since abstentions count toward participation but not approval, the large share makes it more difficult for the proposal to cross the required two-thirds threshold.

Opposition Emerges Around Supply Changes

Both supply-related proposals have also faced public opposition. Solana Company, the Nasdaq-listed SOL treasury company operating under the ticker HSDT, said on Aug. 21 that it supported SGP-0001 but opposed SGP-0002 and SGP-0003.

The company argued that institutional participants require predictable economic conditions when making planning and investment decisions over multiple years.

The voting period was initially expected to end around Thursday afternoon UTC, but remained open on Friday as the final epoch continued. Solana governance votes remain active for three epochs, which are block-based periods whose duration can vary depending on network activity rather than following a fixed clock schedule.

Even if approved, none of the three proposals would immediately alter Solana. An approved SGP serves as authorization to move forward, while the specific technical modifications would still need to be developed, coded and implemented separately.

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