Kraken Supports Solana Inflation Reform

In the voting process aimed at changing the token economy on the Solana network, Kraken supported a deflation-focused proposal. This change affected the power balance between major validators and the community. Two proposals were presented in the vote; SGP 0002 aims to increase the rate of inflation reduction from 15% to 30%, thereby limiting the supply of SOL. If accepted, 18.9 million SOL will be reduced in issuance, and the inflation rate is targeted to decrease to 1.5% by 2029. Initially, Kraken opposed with 8.92 million SOL but later supported the proposal due to increasing pressure. The voter turnout was 60.17%, while the support rate for SGP 0002 remained at 65.15%. The support front is 1.52 points short of the necessary two-thirds threshold. The other proposal, SGP 0003, failed due to major validators abstaining. The voting result will only provide a political mandate, and it will take at least 4.5 months for the changes to come into effect.

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