Solana Governance Vote Disapproves Proposal to Reduce Inflation

Mar 14, 2025
Solana Governance Vote Disapproves Proposal to Reduce InflationSolana Governance Vote Disapproves Proposal to Reduce Inflation

Solana’s Latest Governance Votes Reshape Network’s Economic Model

Solana’s latest governance votes have reshaped the network’s economic model, with mixed results for SOL holders.

A proposal to reduce inflation was rejected, while a plan to distribute validator revenue to stakers gained strong approval.

With 74.3% voter participation—the highest in Solana’s history—the attempt to move from a fixed inflation schedule to a market-driven approach failed, securing only 61.4% of the required 66.67% approval.

Proponents argued that lowering inflation would make SOL more scarce and valuable, but critics feared it would hurt smaller stakers relying on rewards.

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Meanwhile, a separate proposal to establish an on-chain revenue-sharing system for validators passed with nearly 75% support. This change aims to create a more transparent mechanism for distributing staking rewards, replacing informal off-chain incentives.

Solana co-founder Anatoly Yakovenko acknowledged the complexities behind these decisions, highlighting the network’s evolving governance.

Alexander Stefanov