SGP-0002 passed with 176.29 million SOL in favor against 66.19 million opposed, hours after Kraken’s largest validator switched roughly 8.1 million SOL from against to for.
Solana validators approved a proposal to double the rate at which SOL emissions decline, the first measure to pass through the network’s new onchain governance system and the first time validators have agreed to cut issuance.
SGP-0002 closed on Friday with 176.29 million SOL for, 66.19 million against and 20.63 million abstaining, according to the Solana validator governance site. Excluding abstentions, support reached 72.7%, clearing the two-thirds supermajority the governance rules require.
Participation was 60.70% of the 433.49 million SOL snapshot, above the one-third quorum, across 1,326 voters. The proposal is marked finalized and ready for onchain execution.
Kraken Switches Sides
The result turned on a late swing. Six hours before voting closed, the proposal sat at 65.4% of for-and-against stake, below the threshold and on track to fail.
Kraken’s larger validator, holding 8,917,576 SOL, had voted 100% against on Friday morning. It re-cast at 10:37 UTC as 90.34% for and 9.66% against, moving about 8.1 million SOL. The exchange’s smaller validator, with 3,310,547 SOL, stayed 100% against.
Galaxy moved as well, re-casting at 11:18 from 92% abstain to 58.36% for. Roughly 90 additional voters cast ballots in the final hour.
Kraken’s reversal alone would not have changed the outcome. Holding its original position, support would have finished at 69.4%, still above the threshold.
Raising Annual Disinflation
SGP-0002 raises Solana’s annual disinflation rate from 15% to 30%, accelerating the network’s descent to a 1.5% terminal inflation floor. Solana’s annual inflation rate was 3.82% in June.
The proposal, authored by Lostin and 0xIchigo of RPC provider Helius, estimates the change removes about 18.9 million SOL from emissions over six years and brings the network to terminal inflation around the first half of 2029 rather than 2032. At SOL’s current price that is roughly $2 billion in issuance.
An SGP is a directional mandate rather than a technical specification. The change now moves to SIMD-0550, which implements it through Solana’s feature-gate process.
Stakers Pay For It
The cost falls on staking yield. The proposal’s own projections put first-year staking yields at 4.34% under the accelerated schedule against 4.93% under the existing one, dropping to 2.25% by year three against 3.52%. It estimates two validators become unprofitable in year one, rising to 30 by year three.
That arithmetic shaped the opposition, which was led by staking infrastructure firms. Figment voted 17.07 million SOL against and its Ledger by Figment validator added 9.18 million. Everstake voted 7.96 million against.
Helius voted 16.05 million SOL, 99.5% for. Jupiter voted 11.78 million for. Forward Industries, the SOL treasury company, voted its 6 million SOL for.
The Institutional Objection
Solana Company, the treasury vehicle trading as HSDT, said on Aug. 21 it would vote against SGP-0002 and the companion fee proposal while backing the constitution. CEO Joseph Chee said institutions “make decisions based on consistent, predictable structures,” and the company objected to reopening what it called a settled, deterministic schedule during the first governance cycle.
Helius CEO Mert Mumtaz attacked the late no votes hours before Kraken switched. “It seems that many people randomly voted no for Solana disinflation velocity at last second instead of having any discussion under a false facade of thinking it somehow preserves extra revenue through yield for them,” Mumtaz wrote on X. “It is mathematically nonsense to vote no to preserve miniscule marginal inflation revenue unless you believe that inflation is less than a 1% factor in the valuation of an asset.”
Second Run At Emissions
Validators rejected a similar attempt last year. In March 2025 the community voted down SIMD-228, a market-based emissions curve that failed its supermajority after the same split between large staking operators and ecosystem developers. Solana’s leadership was divided over that proposal as well. The vote is the first test of the governance system Solana launched this year.
Two other proposals finalized in the same window. SGP-0001, the draft Solana Constitution, drew 85.97% for and 2.06% against with 51.96% participation. SGP-0003, which splits the flat 5,000-lamport transaction fee into an inclusion fee for block leaders and a burned resource fee, finished with 53.90% for, 18.92% against and 27.18% abstaining on 61.14% participation.
SOL traded at $106.62 on Friday, up 2.3% over 24 hours and 15.9% over the week, according to CoinGecko.
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