Solana validators approved SGP-0002, known as Double Disinflation, implementing SIMD-0550 to double the annual reduction in SOL inflation from 15% to 30%. The change is expected to reduce new supply by about 18.9 million SOL over six years and move the 1.5% terminal inflation target from roughly 2032 to 2029. The Aug. 28 vote passed with 176.29 million SOL in favor and 66.19 million opposed, or 67.001% approval, narrowly exceeding the 66.67% supermajority, with 1,326 validators and 60.7% turnout—the highest in Solana’s on-chain governance history—and the outcome reportedly dependent on the Kraken validator changing its position before the deadline. SGP-0001, ratifying the Solana Constitution and setting a framework for future on-chain votes, also passed, while fee-restructuring proposal SGP-0003 failed, leaving the existing fee schedule unchanged. Staking yields of about 5.25% are forecast to fall to roughly 2.25% by the third year, potentially pressuring smaller independent validators that rely more on inflation rewards than fees; everyday user fees and transaction speeds are not expected to change. Implementation could begin as early as October because the technical specification already exists, with staged activation and full enforcement potentially in the first half of 2027. The vote coincided with record usage: seven-day non-vote transactions hit 191 million on Aug. 27, more than double the year-earlier level, July non-vote transactions reached 4.2 billion, seven-day average fee revenue stood near 9,200 SOL—up more than 80% over three months—and average daily Jito tips rose 26% to 2,073 SOL. SOL has rebounded from summer lows near $60 and is testing $100 as support, with analysts watching a break above $110.15; the tighter supply path and stronger on-chain demand are framed as constructive longer term, while the fee proposal’s defeat removes a potential headwind for compute-heavy applications including on-chain AI agents.