In a significant governance decision, Solana validators have voted overwhelmingly to adopt SGP-0002, a proposal that will double the network’s annual disinflation rate from 15% to 30%. This decision, which saw 67% of the votes in favor, with 25.16% against and 7.84% abstaining, reflects a growing consensus among stakeholders about the importance of maintaining the value of the SOL token.
This new policy means that Solana will reach its long-term inflation target of 1.5% much sooner than anticipated, achieving this benchmark in approximately 2.8 years instead of the previously projected 5.7 years. The approval of this proposal will result in an estimated 18.9 million fewer SOL tokens being issued over the next six years, leading to reduced dilution for current holders.
“This is a pivotal moment for SOL holders, as the decision to cut inflation will help maintain token value in an increasingly competitive market. However, it is important to note that validators and delegators may see a decline in staking rewards due to this change,” commented one analyst.
The governance vote marks a historic step for Solana as it represents the first binding governance process for the network. Alongside the inflation proposal, a new Solana Constitution was approved, while a separate proposal regarding resource and inclusion fees was rejected. Notably, Figment, which holds the largest stake in governance with 17.1 million SOL, voted against the inflation cut, while support came from entities like Helius and Jupiter.
Interestingly, Kraken’s position shifted during the voting process; the exchange initially opposed the proposal but ultimately flipped its stance, with over 90% of its approximately 8.9 million SOL stake backing the inflation reduction.
In a related development, analysts reported that a substantial whale purchased approximately $29.58 million in SOL on Binance on the same day the vote concluded, indicating heightened interest from significant investors in the wake of the double disinflation proposal’s approval.
ETF Inflows Hit Record Levels
As the governance vote unfolded, Solana’s ETF market experienced unprecedented activity, with Glassnode reporting net inflows of $138 million over a span of just 10 days—the strongest stretch on record for Solana ETFs. This surge included a remarkable single-day inflow of $47 million, highlighting concentrated demand among investors.
Bloomberg ETF analyst Eric Balchunas noted that U.S. Solana ETFs have attracted around $1.7 billion in cumulative net inflows since their inception, with very few sustained outflows, underscoring the growing popularity and confidence in Solana’s ecosystem.
Bitwise’s BSOL ETF Surpasses $1 Billion
In a notable achievement, Bitwise’s BSOL ETF has become the first Solana ETF to exceed $1 billion in assets under management. As of August 26, the fund held approximately 9.33 million SOL, valued at around $1.02 billion. Launched in October 2025, BSOL provides investors with direct exposure to SOL and has quickly established itself as the leading Solana ETF by assets held.
The combination of the governance vote and the surge in ETF inflows paints a promising picture for Solana, positioning it as a resilient player in the ever-evolving cryptocurrency landscape.
