All three Solana governance proposals have met the minimum participation requirement, but the vote to accelerate the reduction in new SOL issuance is only barely above the approval threshold. A separate proposal designed to increase SOL burns substantially remains below the two-thirds majority needed to pass.
Solana validators and stakers are weighing two different measures aimed at curbing the growth of the network’s native token supply. One would reduce the amount of new SOL entering circulation, while the other would burn a much larger amount of SOL generated through transaction fees. The issuance proposal is currently ahead, whereas the burn proposal remains short of the required support.
Solana continuously creates new SOL as rewards for the participants who secure and operate the network. Slowing issuance or increasing burns would both reduce the rate at which the overall supply expands, potentially limiting dilution for existing token holders.
The votes mark the launch of Solana’s first onchain governance system, allowing validators and stakers to formally participate in decisions involving major changes to the blockchain’s operation and economics.
One of the proposed changes would make transaction fees more closely reflect the computing resources required to process transactions. The corresponding fee component would then be burned rather than distributed. If approved, the change could increase daily SOL burns from roughly 650 tokens to between 7,500 and 9,000.
At this week’s prices, 9,000 SOL would be worth approximately $800,000 per day. Even so, that burn rate would remain significantly below Solana’s current issuance of roughly 60,000 new SOL each day, according to earlier CoinDesk reporting.
How Solana’s Governance Votes Work
A proposal must receive participation from at least one-third of the network’s total stake and then secure approval from two-thirds of the participating stake. Abstentions contribute toward the participation requirement but do not count as votes in favor, making a high abstention rate potentially important.
Data from Solana’s governance platform showed that all three proposals had reached quorum by Friday.
Solana’s Three Governance Proposals
SGP-0001, often referred to as the network’s “constitution,” has received the strongest backing. The proposal establishes the basic rules for Solana’s governance process, including eligibility, voting power and passage requirements. It currently has 95.35% support, compared with 0.22% opposition.
SGP-0002 has crossed the required threshold, although only by a narrow margin. It proposes accelerating the network’s annual reduction in new SOL issuance by 30%, rather than the current 15% pace.
The proposal has 68.77% support with 47.72% participation. If adopted, Solana would reach its minimum annual inflation rate of 1.5% around 2029, three years earlier than under the current schedule.
The accelerated path would mean approximately 18.9 million fewer SOL tokens are created over six years.
SGP-0003 remains below the approval threshold. The proposal would overhaul part of Solana’s transaction-fee mechanism and direct significantly more SOL toward burning.
It currently has 62.72% support, while 16.52% oppose it and 20.75% abstain. Overall participation is 42.51%, leaving the proposal below the 66.67% support required for approval.
The relatively large percentage of abstentions is a challenge for SGP-0003. Although those votes help the proposal meet quorum, they do not contribute to the two-thirds approval threshold.
Institutional Pushback on Supply Proposals
The two supply-focused proposals have encountered opposition from some market participants. Solana Company, the Nasdaq-listed SOL treasury business trading under HSDT, announced on Aug. 21 that it supported the governance constitution but rejected both supply-related proposals.
The company said institutions need greater certainty around Solana’s economic framework to make investment and business plans over longer time horizons.
The voting period was originally expected to close around Thursday afternoon UTC but remained active Friday while the final epoch was still underway. Solana governance votes last three epochs, with each period determined by blockchain production rather than a fixed number of hours.
Even if a proposal passes, the network does not change automatically. Approval gives the relevant SGP a mandate to proceed, while developers must separately create, test and deploy the technical changes required to implement it.
