Solana completed the first binding chain of governance vote, and the certifying officer adopted the token reduction proposal SGP-0002. Under the new scheme, the annual reduction rate of SOL will increase from 15% to 30%, and the network will reach 1.5%. The distribution floor will advance from 2032 to 2029.

This means that there will be fewer new SOLs in the coming years. The cumulative increase in distribution over the next six years is estimated to be about 18.9 million. For currency holders, the provision of tokens shrinks more quickly; for pledge participants, a reduction in issuance would also reduce the proceeds of the pledge.

The vote was over the threshold.

The proposal was ultimately supported by 67.0 per cent, only slightly above the 66.67 per cent threshold for adoption. A total of 1326 votes participated, with a quorum of 60.7 per cent.

In the final stages of the voting, some large participants changed their positions, reversing the outcome. According to the report, Kraken had voted against it before, and his attitude had been adjusted towards the end. This change has had a direct impact on the final outcome because of the weight of the voting power at its disposal.

Galaxy also abstained and changed the vote at the last hour. In the end result, as long as there are millions of SOLs re-voting, the proposal could go from adoption to failure, indicating that the voting was very competitive.

A reduction in issuance will put down the pledge proceeds

Solana’s current inflation rate will decline year by year until it is fixed at the bottom of 1.5%. The new proposal does not change the end point, but accelerates the rate of decline.

It is stated that, if implemented on a new path, the pledge rate of return could drop from about 5.25 per cent at present to about 2.25 per cent over the next three years. This is also an important reason why some pledge service providers have reservations about the proposal. For a pledge in an institution that relies on a stable gain, faster reductions are not necessarily beneficial.

Charter adopted and no other cost proposal proposed

The same ballot also contained two other proposals.

  • SGP-0001, the Solana Charter, 86.0% supported and adopted
  • SGP-0003, proposal for “resources and inclusion costs”, below the two-thirds threshold

Of these, SGP-0001 is mainly the formalization of the governance voting mechanism. SGP-0003 attempts to split transaction costs into two parts and introduce new costs linked to the calculation of resource consumption, which will be destroyed directly.

Designed as a proposal, if SGP-0003, Solana ' s daily SOL destruction could increase from approximately 650 to a maximum of 9000, an increase of about 12 to 14 times. However, the proposal eventually received only 53.9 per cent of support and failed to pass.

The price fell after the vote.

Prior to the vote, the market had partially factored into the supply contraction expectations. Reports indicate that SOL accumulated an increase of about 44 per cent a month before the vote.

However, when SGP-0003 was not adopted, the movement weakened. The Coinbase data show that on 28 August, SOL opened at US$ 109.18, reaching a maximum of US$ 110.14, then fell back to US$ 103.63, receiving US$ 105, a decline of 3.83 per cent over the start-up and lower than the previous phase close to US$ 111.