Solana governance vote ends with inflation rate unchanged
Solana’s highly anticipated governance vote on reducing the network’s inflation rate has ended in failure, leaving its staking reward structure unchanged.
The proposal, SIMD-0228, aimed to lower the network’s inflation from 4.7% in an effort to strengthen the long-term value of SOL, according to the Cryptopolitan.
Despite strong backing from several key stakeholders, it did not secure the required two-thirds majority to pass. On-chain data shows that over 281 quadrillion votes were cast, representing a 74% voter turnout. However, the proposal received 61.39% approval, falling short of the 66.67% threshold needed for implementation.
Small validators push back
Much of the opposition came from small-scale validators—those holding 500,000 SOL or less—who overwhelmingly voted against the proposal. Many in this group feared that reducing staking rewards would make their operations unsustainable, forcing them out of the network and weakening Solana’s decentralization.
The validator SolBlaze, a vocal opponent of SIMD-0228, warned that passage of the proposal could cause a significant drop in Solana’s staking rate, leading to economic instability.
Despite the outcome, some view the vote as a success in demonstrating Solana’s decentralized governance. Multicoin Capital co-founder Tushar Jain called it a historic moment, comparing its scale to Bitcoin’s 2017 block size debate.
SOL’s price has remained relatively stable around $125, though the token has lost 35% of its value year-to-date. Moving forward, Solana developers plan to shift their focus toward technical improvements, including faster transaction finality and expanded blockspace.
JPMorgan Managing Director Nikolaos Panigirtzoglou said recently that he has been skeptical about short-term ETF approvals for Solana, XRP, and other cryptocurrencies. However, the new leadership at the SEC under Trump could pave the way, with Solana and XRP-based ETFs potentially attracting $14 billion in their first year.
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