Kraken tips Solana’s razor-thin inflation vote

A highly contentious proposal to alter the inflation rate of SOL, a vote called SGP-0002, has passed with precisely 67% ayes. Official rules require two-thirds of participating stake to pass, so the proposal cleared the bar by barely 0.33 percentage points.

As a result of the vote, SOL’s so-called “disinflation rate” will double from 15% to 30%.

SGP-0002 instructs the network to continue creating new SOL but shrink the inflation rate twice as fast.

After switching its vote at the eleventh hour, holders of staked SOL at crypto exchange Kraken tipped the voting outcome. Its 8.9 million SOL validator, labeled “Kraken 2,” cast 90.34% of its stake in favor of the measure.

Had Kraken’s votes cast No instead of Yes, SGP-0002 would have failed at approximately 63.9%, i.e. below the 66.66% threshold.

Helius CEO Mert Mumtaz celebrated Kraken changing its earlier No indication to a Yes during the final whipsaw.

Contributors from Mumtaz’s firm wrote many of the technical proposals for SGP-0002.

Kraken was mathematically decisive but not uniquely responsible. Galaxy and other late voters also moved the tally.

Still, the exchange supplied enough Yes votes to secure a winning margin and was widely credited on social media with flipping the vote.

Read more: First US-listed Solana treasury firm moves and protects executives

Doubling Solana’s disinflation rate doesn’t end inflation

Solana is still inflationary. The change doesn’t flip the rate of new SOL entering the market negative.

To be clear, SOL will always remain inflationary at a positive rate, the only matter of debate was how positive the rate would be.

Solana validators voted to cut future SOL issuance by roughly 18.9 million tokens over six years, but over the long haul, those tokens will still enter the market eventually.

Technical specifications for the change keep terminal (a.k.a. “long tail”) inflation at 1.5%, but estimates reaching that terminal rate 2.8 years after activation instead of 5.7 years. 

It’s the first Solana governance proposal to pass under the network’s new binding, on-chain voting system. A prior attempt at similar territory, SIMD-0228, failed in March 2025 with about 61% support. 

Developers now project approximately 18.9 million fewer SOL created over the next six years.

Under the old 15% annual reduction, SOL wasn’t due to hit the 1.5% floor until around 2032. Doubling that rate to 30% moves the date to roughly 2029.

Developers must still re-anchor the supply curve, test the change, and activate its feature gate. In other words, the vote creates no instantaneous supply shock.

The vote temporarily improves SOL’s scarcity pitch over the next few years. If demand for SOL persists, fewer coins entering the market should provide less supply overhang.

Solana splits votes on two other proposals

The disinflation vote was the most consequential, but the combined vote also included two other proposals, SGP-0001 and SGP-0003.

Stakeholders approved SGP-0001, the “Solana Constitution,” with 85.97% support. It formalized governance processes that accompanied today’s cliffhanger.

Over the past few years, governance of the Solana network has mostly occurred off-blockchain, and this new constitution aims to bring more democratic processes on-chain.

Voters rejected SGP-0003 with 53.90% support, below the two-thirds threshold.

This Solana inflation-related proposal sought to burn a usage-based resource charge while paying block leaders a fixed inclusion fee.

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