Solana Governance Approves Faster Reduction in SOL Issuance | Crypto ETF News
Crypto ETF news: Solana Governance Approves Faster Reduction in SOL Issuance. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
Solana validators have approved a proposal to double the network’s annual disinflation rate, reducing future SOL issuance.According to finalized voting results, the proposal received 67% support, with 25.16% voting against and 7.84% abstaining. Overall participation reached 60.7% of eligible stake.The proposal, known as SGP-0002 or Double Disinflation, increases Solana’s annual disinflation rate from 15% to 30%, while leaving the network’s long-term inflation target of 1.5% unchanged.Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in about 2.8 years, compared with roughly 5.7 years under the previous schedule, Solana Compass reported. The change would result in an estimated 18.9 million fewer SOL being issued over the next six years, reducing dilution for SOL holders but also lowering staking rewards for validators and delegators.SGP-0002 passed with 67% support and 60.7% participation. Source: Solana GovernanceThe vote was part of Solana’s first binding governance process, which also approved a proposed Solana Constitution while rejecting a separate proposal on resource and inclusion fees.Some of the largest participants were divided over SGP-0002. Figment, the largest voter shown in finalized governance data with 17.1 million SOL staked, voted entirely against the measure, while Helius and Jupiter overwhelmingly backed it.Kraken was among those whose position shifted during the vote. The US-based crypto exchange initially voted against SGP-0002 at 12:33 UTC, temporarily pushing support below the required threshold. By the end of voting, more than 90% of its roughly 8.9 million SOL voting stake backed the proposal.Top voters were split on SGP-0002. Source: Solana GovernanceRelated: Solana transactions hit record 4.2B as SOL rallies 40%Solana ETF assets cross $1 billionThe governance vote comes as US-listed Solana investment products continue to attract investor capital despite SOL’s weaker performance earlier this year.Bitwise’s Solana ETF recently surpassed $1 billion in assets, becoming the first Solana ETF to reach the milestone, according to an X post from Bloomberg ETF analyst Eric Balchunas on Friday.US Solana ETFs have attracted roughly $1.7 billion in cumulative net inflows, with little sustained outflow since their launch, Balchunas said Friday.Source: Eric BalchunasMagazine: Hugging Face hack exposes the open-weight AI cybersecurity paradox
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
