SGP-0002, a proposal directly affecting Solana’s token economics, passed with 67.001% support from validators. Rather than reducing the existing SOL supply, the change aims to accelerate the decline in the amount of new tokens entering circulation. Under the new model, the annual issuance reduction rate will increase from 15% to 30%.
The revised model is estimated to result in approximately 18.9 million fewer SOL being issued over the next six years. As a result, Solana’s supply growth is expected to slow considerably faster compared with the current issuance schedule.
The change will also affect staking returns. Staking rewards, currently at around 5.25%, are projected to decline to approximately 2.25% by the third year. A total of 1,326 validators participated in the vote, with the 60.7% participation rate marking the highest governance turnout recorded on Solana to date.
