Solana validators approve proposal to accelerate SOL's deflationary process

Solana validators have officially approved the SGP-0002 proposal, also known as "Double Disinflation," which doubles the network's annual disinflation rate from 15% to 30%. The final vote resulted in 67% in favor, 25.16% against, and 7.84% abstaining, with 60.7% of all eligible stakes participating in the vote. According to the new schedule, Solana is expected to reach its long-term inflation target of 1.5% in approximately 2.8 years. Under the previous schedule, it was projected to take about 5.7 years. According to a report by Solana Compass, this change will result in approximately 18.9 million fewer SOL tokens being issued over the next 6 years. This has a positive aspect in reducing the dilution effect for SOL holders, but it also means that the rewards validators and delegators receive through staking will also decrease. However, the long-term inflation target of 1.5% itself remains unchanged. This vote marked the first binding governance procedure in Solana's history. While a proposal for the Solana constitution was approved during the same process, a separate proposal regarding resource allocation and inclusion fees was rejected. The opinions of key participants were divided. Despite staking 17.1 million SOL, making it the largest voter based on governance data, Figment voted against the entire proposal. In contrast, Helius and Jupiter overwhelmingly supported the proposals. Kraken's actions also garnered attention. The U.S.-based cryptocurrency exchange, Kraken, initially cast a dissenting vote at 12:33 UTC, temporarily causing the approval rate to fall below the required threshold. However, by the time the voting concluded, over 90% of its approximately 8.9 million SOL stake had been converted to votes in favor. In conjunction with this governance vote, Solana investment products listed in the United States have also achieved noteworthy results. According to a post by Eric Balchunas, a Bloomberg ETF analyst, on X (formerly Twitter) on Friday, Bitwise's Solana ETF recently surpassed 1 billion dollars in assets under management, becoming the first Solana ETF to reach this milestone. Balchunas also stated that the total assets under management for all Solana ETFs in the United States have reached approximately 1.7 billion dollars since their launch, with a consistent inflow of funds and no significant outflows.