Solana supports a reduction of 18.9 million SOL issues with a 0.334 percentage point advantage

Key Points

SGP-0002 was passed with a margin of 0.334 percentage points.

Kraken reversed at the last moment, and JitoSOL holders bypassed the validator.

This vote will not immediately change supply.

After activation, circulation is expected to be reduced by 18.9 million SOL units.

Kraken's late reversal saved SGP-0002

SGP-0002 passed with a support rating of 67.001%, barely exceeding the 66.667% threshold. According to Solana's official announcement, this result provides authorization for accelerated de-inflation on the Internet.

Final voting statistics show that the votes in favor were 176.29 million SOL, the votes against were 66.19 million SOL, and the votes abstained were 20.63 million SOL. The participation rate reached 60.7% of the qualified pledge amount, and a total of 1326 verifiers participated in the voting.

Solana verifier governance has ended. Results: SGP-0001: Solana Constitution SGP-0002: Double de-inflation SGP-0003: Resources and included costs- Solana (@solana) August 28, 2026

Shortly before the vote closed, the results looked completely different. It was reported that with about 70 minutes remaining, Kraken converted approximately 8.9 million SOLs to a negative vote, causing the proposal to lag behind by a gap of 58 million SOLs.

Kraken changed his stance again in the final stage and returned approximately 8.1 million SOL tablets to supporters.

JitoSOL holders also take advantage of Solana's override mechanism to vote independently of the validator who manages the underlying pledge. According to voting analysis, without these override votes, the proposal would fail.

Kraken co-CEO Arjun Sethi summarized the exchange's final position after the vote: "Custodians should be channels, not voices."

SGP-0002 is one of three Solana proposals involving supply, transaction fees and delegated voting rules. Voters approved the Solana Constitution with 86 percent support but rejected the proposed resource cost reform, which received only 53.9 percent support and fell short of the two-thirds threshold.

18.9 million SOL pieces were not destroyed

SGP-0002 changed the rate at which Solana's inflation rate fell. It will not remove tokens from current holders, nor will it reduce circulation supply on the day of activation.

Solana's existing plan will reduce inflation by 15% annually until it reaches the long-term lower limit of 1.5%. Once approved changes are activated, the annual decline will increase to 30%. The lower limit itself remains unchanged.

The official proposal estimates that the Internet will reach an inflation rate of 1.5% in about 2.8 years. The existing path takes about 5.7 years.

Over six years, faster planning will result in approximately 18.9 million fewer SOLs being created, making the projected supply approximately 2.6% lower than the original path. Unlike token destruction, this reduction applies to future issues. Solana will continue to create new SOLs, only at a faster pace.

A decrease in token issuance will not lead to an equal decrease in market selling volume. Some pledged rewards are sold to cover costs or realize benefits, while others are re-pledged or held. The proposal changes the number of available tokens, not how recipients handle them.

Lower circulation changes pledge calculations

Under faster planning, pledgers will receive fewer newly created tokens, but their positions will also face less dilution. When total supply grows more slowly, lower nominal yields still allow them to maintain similar network shares.

Verifier fees pose a more thorny problem. Server capacity, staffing and maintenance costs remain, while the rewards of inflation funding are declining. Operators that rely heavily on these reward commissions may face tighter profit margins.

proposal states that 41% of validators already charge no commission on inflation incentives, which limits the direct impact on this group. Other operators may respond by adjusting commissions, attracting more entrusted pledges, or relying more on transaction fees and maximum extractable value.

SGP-0002 does not rewrite these other sources of income. Verifier commissions, transaction fees, MEV revenue and existing reward mechanisms remain unchanged. Initial signs of pressure will come from changes in pledge yields, verifier commissions and the distribution of pledges among operators.

JitoSOL's override shows who controls delegated voting

Solana's governance rules default to assign delegated pledges to the verifier's position. This default value is not final. Holders can override their votes before or after the validator votes, or vote separately if the validator remains inactive.

The Official Governance FAQ describes it as voting sovereignty. Only the part controlled by the delegator moves; the verifier retains its remaining pledge weight position.

SGP-0002 demonstrates the role of this mechanism when the advantage is weak. A verifier or custodian can move millions of SOLs with a single decision, but active committers can break away and change the vote count.

This adds new considerations to the selection of verifiers. Commission rates and performance still affect pledge returns, but unless holders intervene, the operator's governance policies now determine how the entrusted SOL will vote.

SIMD-0550 still needs to be deployed to Solana's main network

This vote approved a policy direction rather than an immediate protocol update. SGP-0002 answers whether Solana should pursue faster de-inflation;SIMD-0550 defines how the network will be implemented.

The client team still needs to add this change to Solana's verifier software. The network must then coordinate its functional gating activations and determine the era in which new plans will begin.

Until this activation occurs, the existing 15% annual deflation rate will remain in effect. Governance issues were resolved on August 28, but a new release curve was not launched.

Next governance vote starts with validator selection

Operators and pledge providers may now be under pressure to disclose their voting positions before future polls begin. This gives the delegator time to accept the default option, override it, or move the pledge elsewhere.

Changes in circulation will unfold gradually over a few years. The lesson learned by the trustor through one vote is that not interfering with his pledge is equivalent to handing over the voting rights to others.