Solana’s validators have started voting on three governance proposals. Two of them could reduce the amount of SOL in circulation. The third one has more to do with how Solana makes decisions in the future.
The voting period opened Sunday and runs until Thursday at about 15:30 UTC. Votes are weighted by how much SOL is staked. That gives the final say to validators, the operators who run the network’s computers, and also to regular holders who have delegated their coins to a validator.
Faster path to less new supply
The first supply proposal, SGP-0002, would speed up Solana’s disinflation schedule. Right now the network reduces the amount of new SOL it creates by 15% each year. If the proposal passes, that reduction rate doubles to 30%. That means Solana would hit its minimum issuance floor much sooner than originally planned.
Less new supply sounds good to holders. But it does not say anything about demand. The proposal only changes the supply side.
More SOL burned from transaction fees
The second supply proposal, SGP-0003, changes how transaction fees work. Under the new plan, each fee would be split into two parts. A fixed portion goes to whoever produces the block. The other portion is scaled by how much computational work the transaction requires, and that part is permanently destroyed.
CoinDesk reported earlier this month that this change could push daily burns from roughly 650 SOL to somewhere between 7,500 and 9,000 SOL. At Monday’s price, that range is worth about $61,000 to $846,000 per day. That is a big jump.
Still, burning more SOL only matters if people are actually using the network. The proposals do not create new activity on their own.
A vote before the rules are official
The third proposal, SGP-0001, does not touch supply at all. It ratifies a document called the Solana Constitution. This document would set out how decisions are made and would switch on the software that runs the votes themselves. Until now, changes to Solana have been agreed informally among developers and the largest network operators.
There is something odd about running all three votes at the same time. SGP-0001 is the proposal that formally establishes Solana’s voting system. Yet the two supply proposals are being voted on through that same system right now. The results will be counted before anyone knows whether the rules governing the count have been ratified.
It is a bit of a chicken-and-egg situation. If SGP-0001 fails, the legitimacy of the other two votes could be questioned. If it passes, then the system is officially in place going forward.
Meanwhile, SOL was trading above $96 early Monday. That is up about 1.6% over the past 24 hours and around 28% over the past week. The market seems to be paying attention, though it is still unclear how these votes will actually play out.
For now, the main thing to watch is Thursday’s deadline and whether the validators choose to cut supply, raise burns, or both. Even with all three votes running at once, the outcome is far from certain.
