TLDR
- Solana validators are voting on three governance proposals, with voting scheduled to close Thursday at about 15:30 UTC.
- SGP-0002 would double the annual reduction in new SOL issuance from 15% to 30%, bringing inflation toward its floor faster.
- SGP-0003 could sharply increase SOL burns by permanently removing part of transaction fees based on network computing demand.
- Estimated daily SOL burns could rise from about 650 SOL to between 7,500 and 9,000 SOL under the proposed fee model.
- SOL reclaimed the $100 level on August 25, trading near $101–$102 as the wider crypto market strengthened.
Solana validators are voting on three governance proposals as SOL price trades above $100. Two proposals focus on supply and could increase SOL burns while reducing new token issuance. Voting began Sunday and runs until Thursday at about 15:30 UTC. Staked SOL determines vote weight, giving validators and delegated holders influence over the outcome.
SOL traded near $101 to $102 on August 25 after a strong run over the past week. The token moved above $100 as Bitcoin climbed past $80,000 during a broader crypto market rally.
SOL Burns Could Rise Under Fee Proposal
SGP-0003 would change Solana transaction fees and how the network handles them. One part of each fee would go to the block producer. The network would permanently burn another part based on the computing work each transaction requires.
Estimates earlier this month suggested SOL burns could rise from about 650 SOL per day to between 7,500 and 9,000 SOL. The proposal would reduce circulating supply through higher token destruction, but it does not create new demand for SOL.
Inflation Proposal Would Slow New SOL Creation
SGP-0002 would speed up Solana’s planned reduction in new token issuance. The network currently lowers its issuance rate by 15% each year. The proposal would double that rate to 30%, allowing Solana to reach its long-term inflation floor sooner.
Together, SGP-0002 and SGP-0003 would reduce supply growth through two methods. One would lower the pace of new SOL entering circulation. The other would increase SOL burns linked to transaction activity. Validators and holders have until Thursday to vote on both proposals.
SGP-0001 would approve a document called the Solana Constitution. It sets formal rules for network governance and activates software used to run validator votes. Solana has previously relied on informal agreement among developers and large operators.
All three votes are taking place at the same time. The supply proposals are therefore using the same voting system that SGP-0001 seeks to establish formally. The network will count results before it knows whether validators approved those governance rules.
SOL Price Rally Brings Added Market Attention
SOL’s move above $100 triggered more than $16 million in short liquidations, according to SolanaFloor. The largest reported short liquidation was about $4 million near $95. The account also reported around $1 billion in USDC minted on Solana within 24 hours.
$SOL LIQUIDATIONS: Over $16 million worth of short positions liquidated as $SOL surged back above $100.
The single largest short liquidation was $4 million at $95. pic.twitter.com/c61Eq1owqA
— SolanaFloor (@SolanaFloor) August 25, 2026
Bitwise’s Solana ETF recorded more than $108 million in single-day trading volume, according to the same source.
