Solana's "double deflation" proposal, SGP-0002, has passed, increasing the annual deflation rate from 15% to 30% and setting a new record for on-chain governance participation.
The proposal, passed last Friday (August 28) with over 67% approval, is expected to reduce SOL issuance by approximately 18.9 million over the next six years. Concurrently, Solana network fees (denominated in SOL) reached an all-time high seven-day average of nearly 9,200 SOL on Thursday, August 27, while non-vote transaction volume also hit a record seven-day average of 191 million transactions. Following the proposal's passage, staking rewards are projected to decrease from approximately 5.25% to 2.25% within three years. This could render many validators unprofitable, particularly small independent operators who rely on inflation revenue rather than transaction fees.
Source:The Block · Source Link
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