Solana Fees Hit All-Time High, SGP-0002 Inflation Reduction Proposal Passes

Solana's fee revenue denominated in SOL reached a seven-day average of nearly 9,200 SOL on August 27, up over 80% from three months ago; non-voting transaction volume also hit a seven-day record of 191 million transactions, compared to just 88 million a year earlier. Jito validator tips averaged 2,073 SOL per day over the past week, up 26% week-over-week, directly reflecting increased on-chain activity. Meanwhile, the SGP-0002 "double deflation" proposal passed last Friday with just over 67% support (threshold: 66.67%), with voter turnout at 60.7% covering 1,326 validators, setting a new record for Solana on-chain governance participation. The proposal doubles the annual inflation reduction rate from 15% to 30%, expected to cut approximately 18.9 million SOL from planned issuance over six years. This means the annual influx of new SOL supply into the market will decrease, and validators will earn less for the same amount of work. Staking rewards will drop from approximately 5.25% to 2.25% in the third year, squeezing validators who rely on inflation income rather than transaction fees, with many potentially facing losses within three years. However, the impact mainly affects small independent operators, while regular users are unlikely to notice significant changes in Solana network speed or fees.