Solana Company (Nasdaq: HSDT) has signaled support for Solana’s proposed on‑chain constitution but will vote against two high‑profile economic changes—at least for now—saying the timing could chill institutional participation. On Aug. 21 the operator of Asia‑Pacific validator infrastructure and a major staker announced it will back SGP‑0001 (the Solana Constitution) when on‑chain voting opens Aug. 22. At the same time, the firm said it will oppose SGP‑0002 (Double Disinflation Rate / SIMD‑0550) and SGP‑0003 (Resource and Inclusion Fee / SIMD‑0553), arguing that changing issuance and transaction‑fee mechanics during the first live governance cycle would introduce unnecessary modeling risk for institutions. Why the split vote - Support for SGP‑0001: Solana Company praised the constitution’s voting design, which gives staking participants transparent, stake‑weighted votes while allowing token holders to override votes cast by their delegated operators. Management said that structure makes it easier for financial institutions to participate in governance without surrendering control of voting rights, and that adopting it is a necessary step to attract more institutional capital to Solana. - Opposition to SGP‑0002 and SGP‑0003: The company framed its “no” votes as objections to timing rather than the goals themselves. Institutions evaluating validator operations and staking need multi‑year economic rules they can model reliably. Solana Company said changing both issuance and fee parameters in the network’s first governance cycle risks delaying institutional decisions. What the proposals would do - SGP‑0002 / SIMD‑0550 (Double disinflation): Proposes doubling Solana’s annual disinflation rate from 15% to 30% while keeping the terminal inflation floor at 1.5%. That change would bring the network to the 1.5% floor in roughly 2.8 years instead of 5.7 and is estimated to reduce emissions by about 18.9 million SOL over six years (not a guaranteed supply figure). SIMD‑0550 entered Solana’s improvement‑document repository as “Review” on July 23. - SGP‑0003 / SIMD‑0553 (Resource and Inclusion Fee): Would make transaction costs partly resource‑based and burn the resource component, replacing today’s flatter fee structure with a variable charge linked to network resource consumption. Prior analysis (Galaxy Research) suggested such a change could lift daily SOL burns from roughly 650 to between 7,500–9,000 under recent conditions; the SIMD‑0553 author later called earlier estimates “misleading” and published a more nuanced outcome range. The institutional angle Solana Company stressed that institutions rarely cite issuance itself as a barrier; their concern is predictability. Staking yields are often treated as auditable revenue or operating cash flow, so sudden changes to issuance or fees make revenue forecasting and risk models unreliable. The company said it might support accelerating disinflation in the future if SOL begins to register sustained net capital inflows. Why it matters to Solana Company and markets Staking revenue is material to Solana Company’s business: its Aug. 15 earnings report showed staking produced $2.512 million of $2.526 million in Q2 revenue. The firm earned 31,200 SOL in staking rewards during the quarter and automatically restaked them, producing an approximate 97% gross margin. Still, operating costs and digital‑asset sale losses contributed to a $30.3 million net loss for the quarter. As a Nasdaq‑listed company, HSDT offers U.S. investors indirect exposure to SOL and staking economics without direct token ownership. Broader market links Changes to issuance or fees also affect token holders and staking funds. For example, Bitwise’s Solana Staking ETF held 8.18 million SOL (roughly $622.02 million) as of Aug. 9, with 99% of tokens staked. Bitwise reported a 6.21% gross annualized staking reward (90‑day) and a 5.84% net rate after costs, and warned that rewards can change with network conditions. Governance mechanics and next steps Even if an SGP passes, it is a policy instruction—not executable code. Each proposal needs at least 66.67% of the decisive stake (votes for and against, excluding abstentions) to pass. Approved SGPs require developers to finalize the associated Solana Improvement Documents, prepare software, and deploy changes through feature gating. Solana Company said it disclosed its positions ahead of voting so delegators understand how their validator operator intends to vote; under the proposed constitution, underlying SOL holders can still override an operator’s vote. Bottom line Solana Company is backing the governance framework that could broaden institutional participation, but it wants economic changes—especially those affecting issuance and fees—put on hold until the network’s governance and capital flows prove stable enough for institutions to model revenue and risk reliably. Read more AI-generated news on: undefined/news