Crypto Scenario Insights

Solana's Supply Cut Approved: What Does the Governance Vote Mean?

What happened

Solana's governance proposal SGP-0002, aimed at doubling the network's annual disinflation rate, has been officially accepted. The vote closed with a substantial majority voting 'For', according to Validator Info.

If it goes well

If Solana's SGP-0002 proposal is successfully implemented, it would represent a significant step in the network's maturation towards active monetary policy management.

If it goes badly

If the implementation of SGP-0002 encounters significant technical hurdles or delays, the positive narrative surrounding the governance vote could quickly sour.

What we think

Our reading is that the passage of SGP-0002 marks a pivotal moment for Solana's governance, demonstrating its capacity to reach a consensus on a significant monetary policy change.

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Solana's Supply Cut Approved: What Does the Governance Vote Mean?

We explain what happened and what could follow. We do not forecast prices.

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