Solana validators passed the network's first binding on-chain governance vote, doubling the pace at which new SOL issuance shrinks each year. The changes land as SOL trades near $106, up roughly 44% in August, while US spot Solana ETFs post a five-day inflow streak worth approximately $1.22 billion.
Solana closed its first binding on-chain governance vote this week, and all three proposals passed above quorum. The vote decides how fast the network's token issuance shrinks going forward, and it landed the same day SOL's chart went vertical.
Validators double the pace of disinflation
SGP-0002 doubles Solana's disinflation rate from 15% to 30%, pushing the network to its fixed 1.5% inflation floor by 2029 instead of 2032 and removing roughly 18.9 million SOL from the projected issuance schedule. The cost falls on stakers: 21Shares figures staking yield drops from about 5.25% today to around 2.25% within three years, and smaller validators could get squeezed out entirely. A second measure, SGP-0003, splits the transaction fee into a base fee that still pays validators and a resource fee that gets destroyed outright, taking daily burns from about 650 SOL to as much as 9,000 SOL.
The vote wasn't unanimous. Solana Company, the Nasdaq-listed treasury firm trading as HSDT, backed the governance constitution but voted against both economic changes, arguing institutional stakers need predictable yield more than a faster cut. DeFi Development Corp voted the other way and backed it with cash, buying 19,000 SOL for $1.86 million at an average of $98.14, its first SOL purchase since October 2025, lifting its treasury to roughly 2.33 million SOL. DFDV shares gained more than 16% Thursday.
ETF inflows help SOL hold its breakout
SOL climbed from $96.60 on Aug. 26 to an intraday high of $110 before easing back to around $106.25. The advance held even after a slightly hotter-than-expected inflation reading briefly knocked SOL down to $95.23, as US spot Solana ETFs extended their inflow streak to five sessions, taking in $33.5 million on Aug. 24 alone and pushing cumulative inflows to about $1.22 billion.
Demand is also set to widen. Charles Schwab said it plans to add SOL, AVAX, and LINK to Schwab Crypto, putting SOL in front of tens of millions of brokerage accounts just as its supply schedule tightens.
Sources: Decrypt, crypto.news
Trading involves risk.
Risk Disclaimer
