Solana passes SGP-0002 governance vote to reduce staking yields from 5.25% to 2.25% over three years, as network fees and transaction volume hit record highs.
Regulation & Gov ·
Solana's network fees reached nearly 9,200 SOL on a seven-day average as of Aug. 27, representing a gain of more than 80% over the preceding three months, according to activity metrics. Seven-day non-vote transaction volume also hit a record 191 million, compared to 88 million a year prior, while Jito validator tips averaged 2,073 SOL daily over the same period, up 26% week over week. These metrics reflect sustained growth in network usage and validator revenue streams.
The governance proposal SGP-0002, titled "Double Disinflation," passed with 67.001% support. The measure aims to reduce staking yields from approximately 5.25% to 2.25% over three years. The reduction reflects a structural shift in validator incentive composition, moving away from reliance on inflation-based rewards toward transaction-fee-driven revenue.
The yield reduction poses uneven consequences across the validator ecosystem. Operators heavily dependent on staking inflation rather than transaction fees face pressure, particularly smaller independent validators with limited transaction-generation capacity. Whether this realignment strengthens or strains network decentralization and validator participation over the three-year implementation window remains to be seen.