Solana Inflation Cut and Fee Proposal Draw Criticism
Solana (SOL)
Editor:
Eugene Serbin
crypto.news reports that Solana’s plan to double its annual disinflation rate has faced criticism from SOL Strategies CEO Michael Hubbard, who calls the move premature. The SGP-0002 proposal increases the rate at which inflation falls from 15% to 30%, reducing the time to reach the 1.5% terminal rate from 5.7 to 2.8 years. It passed with 67% of participating stake, removing an estimated 18.9 million SOL from projected issuance over six years.
Hubbard argues that current inflation of 4% to 4.5% is not extreme and that staking rewards remain in the economy via restaking. He rejects the view that issuance is the main force holding back SOL’s market performance. Additionally, Hubbard questioned the tally for SGP-0003, which redesigns transaction charges via SIMD-0553.
The proposal passed with 53.9% support under the official tally but would have secured 74% if abstentions were excluded from the approval denominator. Hubbard argues the calculation method shifted goalposts after voting began, violating procedural integrity. The fee change introduces a 2,500-lamport inclusion fee and a resource-based fee, potentially increasing daily SOL burns. Hubbard also noted that the proposal’s author, Cavey of Temporal, runs HumidiFi, a dominant proprietary automated market maker.
How the market reacted
Whalio's own Binance spot order flow for SOL, measured when this story was written up on 2 September 2026. Not the outlet's figures.
Solana is trading at $100.00 with a 1-hour buy ratio of 57.0% and a 4-hour buy ratio of 46.3%, while the 24-hour buy ratio sits at 46.3%. Short-term buying pressure appears to be building, as the 1-hour ratio exceeds both the 4-hour and 24-hour readings. The 1-hour volume delta is positive at +$532,656, contrasting with a negative 24-hour volume delta of -$18,331,804. This indicates that recent spot buying has outweighed selling in the last hour, reversing the net outflow seen over the full day. A positive volume delta means buyers are executing more volume than sellers at the current price.
The latest daily buy ratio of 48.8% sits at the 27th percentile of the last 322 days, against a median of 50.0% - weaker buying than most days.
Was that an ordinary day?
The same Binance spot measurements for SOL, averaged over the days leading up to the story.
Over the preceding week, the 7-day average buy ratio was 51.5%, making the current 24-hour ratio of 46.3% a 5.1-point decline. This reading is lower than the weekly average, indicating a shift toward selling pressure compared to the prior seven days. Spot volume over the last 24 hours was $253,369,715, which is 0.75x the weekly average volume. While the 8-day volume delta was positive at +$56,768,984, the recent 24-hour net flow has turned negative. This suggests that while the week has seen net accumulation, the most recent day has seen a withdrawal of liquidity relative to the norm.