Solana validators approve SGP-0002, cutting projected

Solana validators approved SGP-0002 “Double Disinflation,” doubling the network’s annual disinflation rate and modeling 18.9 million fewer SOL issued over six years. Bitcoin’s post-quantum work also moved forward, with an experimental quantum-resistant mainnet spend and a new proposal to upgrade signatures via the BIP process.

Key Takeaways

Solana validators approved SGP-0002 to double the annual disinflation rate from 15% to 30%, modeling 18.9 million fewer SOL issued over the next six years.
The governance vote drew 60.7% eligible-stake participation, with 67% in favor, 25.16% against, and 7.84% abstaining.
The updated schedule pulls Solana’s path to 1.5% terminal inflation forward to about 2.8 years from roughly 5.7 years.
Bitcoin’s post-quantum track advanced through a 10,000-satoshi mainnet QSB spend and an Aug. 27 BIP proposing SHRINCS signatures that remain at least nine times larger than current signatures.

Solana’s “Double Disinflation” Vote Pulls Forward the Supply Curve

Solana validators approved SGP-0002, branded “Double Disinflation,” a token-economics change that doubles the network’s annual disinflation rate to 30% from 15%. The modeled impact is a reduction of 18.9 million SOL in projected issuance over the next six years. That is a real supply-path change, not a marketing line.

The vote also put numbers on validator alignment. Participation reached 60.7% of eligible stake, with 67% supporting the proposal, 25.16% voting against, and 7.84% abstaining. That split matters because it signals the inflation debate is not settled by default, even when the end state is framed as “lower issuance.”

Under the new schedule, Solana is expected to reach its 1.5% terminal inflation rate in about 2.8 years, versus roughly 5.7 years under the prior schedule. Disinflation is the slope of the issuance curve. This vote steepens it.

How the New Issuance Path Changes the SOL Supply Narrative

For traders, the mechanical takeaway is simple: fewer new coins, sooner. Doubling the disinflation rate compresses the time window where issuance is meaningfully higher than the 1.5% terminal rate, which changes how the market can frame forward supply over a multi-year horizon.

The catch is distributional. Lower issuance is not a free lunch for every stakeholder. Validators and other recipients of inflation-linked rewards are the obvious counterparty to “less supply,” and the 25.16% no vote plus 7.84% abstention reads like a reminder that future changes tied to validator economics can remain contested.

The other leg of the narrative is activity. Onchain data presented by The Kobeissi Letter showed Solana processed a record 4.2 billion transactions in July, up 13.5% from June. Transaction counts were also described as up roughly 2 billion since December, a 91% increase. If activity stays elevated while issuance tapers faster, the market gets a cleaner supply-demand story. If activity cools, the disinflation headline risks becoming a one-off catalyst rather than a durable repricing input.

Bitcoin’s Post-Quantum Progress: From a Mainnet Spend to a Signature Upgrade Proposal

Bitcoin’s post-quantum work advanced on two tracks: a transaction-level stopgap that can be demonstrated today, and a longer-term signature upgrade path that has to survive the BIP process.

On the stopgap side, StarkWare researcher Avihu Levy tested an experimental quantum-resistant transaction on Bitcoin mainnet. Onchain data showed StarkWare spent a 10,000-satoshi output protected by Levy’s Quantum Safe Bitcoin (QSB) scheme. The design targets a specific vulnerability window: the period when public keys are exposed in the mempool, the waiting area where pending transactions sit before confirmation.

QSB combines hash-based one-time signatures with computational searches that bind authorization to a specific transaction. It works, but the constraints are the point. Each transaction takes hours and costs $150–$200, which frames QSB as an emergency tool rather than something that can scale to normal usage patterns.

The longer-term path is a signature scheme upgrade. On Aug. 27, Blockstream researchers published a Bitcoin Improvement Proposal proposing the SHRINCS post-quantum signature scheme. The team reduced a large hash-based signature by about 13.23x, but the resulting SHRINCS signature remains at least nine times larger than current Bitcoin signatures and comes with trade-offs.

Blockstream Research’s Jonas Nick described the proposal as “the first concrete proposal for a post-quantum signature scheme designed specifically for Bitcoin.” He also called it “not optimal along every axis” and added, “I do think it is a very good trade-off among the options we have now,” putting the work in the bucket of engineering compromise rather than silver-bullet cryptography.

Levels and Catalysts to Monitor After the Supply-and-Security Headlines

Solana’s next catalyst is not another vote headline. It is implementation detail and timing for the updated issuance schedule after SGP-0002 approval, plus any follow-on governance items that touch inflation or validator economics. The market can price a modeled 18.9 million SOL reduction. It cannot price ambiguity around rollout.

Bitcoin’s post-quantum path hinges on developer review velocity. The Aug. 27 SHRINCS BIP needs scrutiny and iteration, especially around signature-size costs and the trade-offs Nick flagged. A proposal can exist for months without converging on something shippable.

QSB’s signal will come from repetition and improvement. One 10,000-satoshi spend proves feasibility. It does not prove practicality. Watch for additional mainnet demonstrations and whether the stated hours-long runtime and $150–$200 cost compress meaningfully.

Macro positioning still matters because it decides whether protocol headlines get follow-through. Bitcoin ETFs minted more than $3.3 billion in August for the strongest month since October 2025’s all-time high month, but outflows on Friday ended a nine-day inflow streak. If creations resume, these protocol narratives can ride a bid. If flows keep leaking, the same headlines can get ignored.

My Read: Why These Two Protocol Stories Can Matter More Than the Weekly Price Print

The threshold that matters on Solana is whether the market treats SGP-0002 as enforceable supply math or as governance theater. The vote delivered a quantified change, 18.9 million SOL less issuance over six years, and it pulls terminal inflation forward to about 2.8 years. The opposition block, 25.16% against with 7.84% abstaining, is the reminder that token-economics changes still have a live counterparty.

Bitcoin’s quantum story is finally leaving the “someday” bucket. QSB is expensive and slow by design, which makes it a credible last-resort tool, not a scaling plan. SHRINCS is the opposite, a system-level path with clear costs, at least nine times larger signatures even after a 13.23x reduction. If Solana executes the new issuance schedule cleanly and Bitcoin’s SHRINCS discussion converges into an implementable upgrade path, supply and security stop being narratives and start being constraints the market can price.

Sources

Cointelegraph