Solana Will Now Print Less SOL as Disinflation Vote Passes in Dramatic Fashion

What happened

Solana's community passed the "Double Disinflation" proposal by a razor-thin margin, which will reduce the amount of new SOL tokens created. A separate proposal to burn fees failed. Kraken nearly caused the vote to fail.

Confirmed

Global impact / market context

Printing less SOL means the supply of new tokens shrinks, which can support the price if demand stays steady. This affects Solana's economy and investors who hold SOL, as reduced new supply may improve scarcity.

Analyst inference

Solana's network activity and token price may react to this supply change. Lower token creation could make SOL more attractive to investors seeking assets with less dilution, which means less new supply reducing existing holders' share, potentially influencing trading and staking decisions.

Analyst inference

What to watch

1. The failed fee-burning measure means transaction fees will not be destroyed, so watch whether Solana's community proposes a similar fee-burn plan again in the future. Confirmed
2. Investors should watch how the reduced SOL issuance affects the token's price and network usage over coming months, as lower supply may shift market dynamics. Proposed
3. Watch whether other blockchain networks adopt similar disinflation measures, as Solana's close vote could inspire or discourage copycat proposals elsewhere. Analyst inference

Affected assets

• SOL — Solana

Evidence

• decrypt.co