Solana Validators Approve Doubling Disinflation in First Governance Vote, With Kraken Reversing Late

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's SGP-0002 proposal passed with 67% support, doubling SOL's disinflation rate from 15% to 30%. Kraken's last-minute vote shift was decisive. The change reduces future SOL issuance by ~18.9M tokens over six years, with long-term inflation remaining at 1.5%. Two other proposals, SGP-0001 and SGP-0003, were also voted on, with the former passing and the latter failing.

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.