Kraken tips Solana’s razor-thin inflation vote

Solana (SOL) rose 8% after breaking $100, with $21M in short liquidations. Charles Schwab added SOL to its platform. SOL ETFs saw 7-day inflows of $104M. A vote to reduce SOL inflation is underway. Trading volumes surged 66%, with SOL nearing a $120 target.

Bitwise's Solana ETF (BSOL) reached $1.017 billion in assets, holding 9.33 million SOL tokens. It's the first Solana ETF to hit this milestone, with a 0.56% premium to its net asset value. SOL was trading at $102.65 on Aug. 28.

Bitcoin's surge above $80,000 boosted crypto-related stocks, including miners and digital asset firms. Circle's USDC stablecoin saw a supply increase, leading Bernstein to maintain an Outperform rating and $140 price target. Strategy's financial health depends more on capital market access than Bitcoin's price, while Solana's transaction volume hit a record, driving a 40% rally in SOL.

Solana validators approved a proposal to double the disinflation rate of SOL emissions, with 72.7% support. Kraken's late vote shift contributed to the approval. The change accelerates Solana's path to a 1.5% terminal inflation rate, reducing staking yields and potentially making some validators unprofitable. According to the proposal, this removes about 18.9 million SOL from emissions over six years.

Solana validators passed SGP-0002, doubling the network's disinflation rate from 15% to 30%, reducing SOL issuance and hitting a 1.5% floor by 2029. The vote was close, with Kraken initially opposing before changing its stance. Validators also ratified SGP-0001 but rejected SGP-0003, which would have increased SOL burns. The changes may impact SOL's price and staking yields.

Solana's first network-wide vote narrowly passed a proposal to double disinflation, with validators linked to Kraken and Galaxy switching sides at the last minute. The proposal, SGP-0002, received 67% support, just above the two-thirds threshold. SOL token was down 1.2% over 24 hours near $106.