Solana’s first on-chain voting round ends: the anti-inflation proposal passed, but the token-burn proposal flopped
$SOL is around 105 today—gains aren’t explosive, but on-chain activity is getting serious. Solana’s first-ever formal on-chain governance vote has taken place: SGP-0002, the anti-inflation proposal, passed with roughly 67% support. Meanwhile, SGP-0003—the proposal to burn transaction fees—did not pass.
It sounds technical, but in plain terms it’s one sentence: the speed at which new coins are becoming fewer will increase—downward inflation goes from a 15% to a 30% reduction rate each year. However, the community hasn’t reached consensus on the idea that “transaction fees should burn.” The direction to reduce supply is set; the full deflation loop is still missing a piece. For holders, this is a mid-term positive. For those who earn yield primarily by staking, returns will be compressed. So yes, the vote will get noisy—totally normal.
What’s even more coincidental is that the liquidity backdrop is also helping. This week, Solana ETFs saw about $153 million in net inflows, the highest since last October. And after an address stayed quiet for eight months, it suddenly bought roughly 76,900 SOL—worth about $8 million. Governance passes + ETF inflows + a whale waking up: the short-term narrative is lined up.
But don’t look at just this one thread. Transaction V1 is set to go live on September 9, and in October there’s a major upgrade to the Alpenglow consensus layer. In upgrade windows, the easiest two outcomes to see are: one is that expectations get pumped and then it dumps, or the other is that pricing only starts after the changes truly land. I’d rather see whether $SOL can treat 105 as a stepping stone instead of a ceiling. Anti-inflation is the slow variable, price is fast emotion—when the two don’t align, you believe the emotion first, then the fundamentals.
$SOL is around 105 today—gains aren’t explosive, but on-chain activity is getting serious. Solana’s first-ever formal on-chain governance vote has taken place: SGP-0002, the anti-inflation proposal, passed with roughly 67% support. Meanwhile, SGP-0003—the proposal to burn transaction fees—did not pass.
It sounds technical, but in plain terms it’s one sentence: the speed at which new coins are becoming fewer will increase—downward inflation goes from a 15% to a 30% reduction rate each year. However, the community hasn’t reached consensus on the idea that “transaction fees should burn.” The direction to reduce supply is set; the full deflation loop is still missing a piece. For holders, this is a mid-term positive. For those who earn yield primarily by staking, returns will be compressed. So yes, the vote will get noisy—totally normal.
What’s even more coincidental is that the liquidity backdrop is also helping. This week, Solana ETFs saw about $153 million in net inflows, the highest since last October. And after an address stayed quiet for eight months, it suddenly bought roughly 76,900 SOL—worth about $8 million. Governance passes + ETF inflows + a whale waking up: the short-term narrative is lined up.
But don’t look at just this one thread. Transaction V1 is set to go live on September 9, and in October there’s a major upgrade to the Alpenglow consensus layer. In upgrade windows, the easiest two outcomes to see are: one is that expectations get pumped and then it dumps, or the other is that pricing only starts after the changes truly land. I’d rather see whether $SOL can treat 105 as a stepping stone instead of a ceiling. Anti-inflation is the slow variable, price is fast emotion—when the two don’t align, you believe the emotion first, then the fundamentals.