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Solana’s faster disinflation plan leads vote as $800K burn proposal trails
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- DeepHorus
Solana's first-ever onchain governance vote is underway, with operators deciding on key proposals to shape the network's future. At the forefront is a plan to accelerate disinflation, which is narrowly passing with 68.77% support. This exceeds the critical two-thirds threshold required for approval.
The vote includes three distinct proposals, all of which have successfully cleared the quorum requirement. A foundational constitution proposal, SGP-0001, is passing easily with overwhelming 95.35% support. It establishes the core rules for future governance votes on the Solana network.
The leading proposal, SGP-0002, seeks to reduce the annual inflation rate by 30% each year. This would halve the current 15% annual reduction schedule, accelerating the path to a minimum 1.5% inflation rate. Proponents argue this would create roughly 18.9 million fewer SOL over six years, reducing dilution for token holders.
A second major proposal, SGP-0003, aims to significantly increase token burns. It would restructure transaction fees to destroy more SOL, potentially raising daily burns from 650 SOL to between 7,500 and 9,000 SOL. At current prices, the upper estimate represents about $800,000 in value burned daily.
However, SGP-0003 is currently failing, with only 62.72% support. This falls short of the required two-thirds approval threshold. A notably high abstention rate of 20.75% is contributing to its difficulty in reaching the necessary support level.
Notable opposition has emerged from Solana Company, the publicly traded SOL treasury firm. It publicly opposed both supply-altering proposals, arguing that institutions need predictable economic rules for multi-year planning. The company did, however, endorse the foundational constitution proposal.
These votes represent a significant milestone for Solana, marking its formal adoption of decentralized governance. It is crucial to note that even if approved, these measures would only serve as mandates. Separate technical work would still be required before any changes to the network's economics could take effect.
Voting was initially expected to conclude but remained open into Friday as the final epoch continued. The outcome of this historic vote will set a precedent for how major economic decisions are made on the Solana blockchain moving forward.
