TL;DR
- Solana validators approved SGP-0002, which reduces the rate of new SOL creation by 30% annually, reaching 68.77% support.
- SGP-0003, which would have raised daily burns to up to $800,000 in SOL, failed to reach the required two-thirds threshold and fell short of approval.
- Solana Company, a SOL-based treasury firm, opposed both proposals, arguing the need for predictable rules for institutional planning.
The validators of Solana launched the network’s first onchain governance and moved forward on two of the three proposals put to a vote. The one that reduces the issuance of new native tokens managed to clear the approval threshold, while the more aggressive initiative, which would have driven up daily SOL burns, failed to secure sufficient backing.
The voting system requires that one third of the network’s stake participates and that two thirds of the participating stake votes in favor. Abstentions count toward the quorum but do not add to the approval percentage, a technical detail that proved decisive in the outcome of the third proposal.
Three Proposals, Two Different Outcomes for Solana
SGP-0001, known as the governance constitution, passed with ease: it received 95.35% support and just 0.22% of votes against. It establishes the formal rules on who can participate, how votes are weighted, and what level of backing is needed to approve changes to the network.
SGP-0002 crossed the approval threshold with very little margin. With 68.77% support and a participation rate of 47.72%, the proposal would reduce the rate of new Solana token creation by 30% per year, accelerating the disinflation process. Under this scheme, issuance would reach its minimum of 1.5% annually around 2029, instead of 2032, implying approximately 18.9 million fewer SOL created over six years.
SGP-0003, by contrast, was rejected. The proposal sought to modify the fee structure per transaction and raise daily burns from around 650 SOL currently to between 7,500 and 9,000 SOL, a range whose upper end equates to roughly $800,000 per day at this week’s prices. Even so, it received only 62.72% support, below the minimum required.
High Abstention Tipped the Balance
The abstention rate for SGP-0003 was notably higher than in the other votes, at 20.75%. Since abstentions increase participation without contributing to the approval threshold, their volume made it mathematically more difficult to reach the required two thirds.
Opposition also made itself felt in the institutional sector. Solana Company, the firm that maintains a SOL treasury, declared that it supported the constitution but rejected the economic proposals, arguing that institutions require predictable rules for long-term planning.
Neither of the approved votes implies automatic changes to the network: an approved SGPÂ represents a mandate to move forward, but the technical adjustments must be drafted and implemented separately.
