Solana validators vote on three major governance proposals

Validators on the Solana network can vote on three governance proposals that could bring far-reaching changes to the network. The proposals concern the introduction of a so-called Solana constitution, a doubling of the pace at which inflation declines, and a restructuring of transaction fees. The vote runs until the end of epoch 1023, on Thursday around 15:30 UTC.

Solana is available at Bitvavo and OKX.

In brief:

• Validators vote on three proposals: a constitution, faster disinflation and a new fee structure.
• SGP-0002 wants to double the disinflation rate from 15% to 30%.
• SGP-0003 redistributes transaction fees into a base fee and a resource fee that is fully burned.

Three proposals on the ballot at the same time

Solana Developers announced on Sunday that voting has opened on three governance proposals simultaneously. The first proposal, SGP-0001, concerns the introduction of a Solana constitution: a formal document that sets out the basic principles and rules for the network.

SGP-0002 focuses on Solana’s so-called disinflation mechanism. Currently, the issuance of new SOL declines by 15% annually. This proposal seeks to increase that percentage to 30%, causing the amount of new SOL to decrease more quickly. That could have a deflationary effect on supply in the long run.

Transaction fees to be split if SGP-0003 is approved

The third proposal, SGP-0003, reforms the way transaction fees work. The current fee structure is split into two parts: a base fee for including transactions in a block and a separate resource fee that is burned 100%. The latter mechanism reduces the circulating supply of SOL with every transaction.

Governance on blockchain networks has been firmly in the spotlight recently. Earlier this month, Term Labs was hacked for $85 million via a governance exploit, in which malicious actors abused the voting process to make off with funds.

Validators can cast their vote via governance.solana.com. At the time of voting, Solana is trading at $93, up 1.0% in the past 24 hours.