Ahead of the opening of the on-chain vote on August 22, 2026, Solana Company has disclosed its position on three key Solana Governance Proposals (SGPs). The institutional validator operator, listed on the Nasdaq exchange under the ticker HSDT, rejects two proposed major economic changes to the network but has approved one proposal related to governance.
This voting move highlights the tension between the community’s push to reduce token supply and institutions’ need for certainty regarding long-term rules.
Rejecting Aggressive Disinflation and Extra Fees
The two proposals flatly rejected by Solana Company focus on controlling the SOL supply and restructuring the daily transaction fee system. The first proposal, SGP-0002, also known as SIMD-0550, aims to double the rate of the network’s annual inflation decline from 15% to 30%.
If this proposal passes, the final SOL inflation rate of 1.5% will be reached in just 2.8 years - a rate of reduction twice as fast as the original target schedule of 5.7 years. This accelerated scenario is expected to cut new supply issuance by up to 18.9 million SOL over the next six years.
The second proposal facing rejection is SGP-0003, or SIMD-0553. This new rule is designed to impose additional fees on daily transactions based on the level of network computing resource consumption. An analysis by Galaxy Research estimates that implementing this rule could sharply accelerate the daily SOL burn rate, surging from an average of 650 tokens to a range of 7,500 to 9,000 tokens.
Solana Company stated that their rejection of both economic supply tightening plans does not mean they oppose the ultimate goal. The root of the issue lies purely in the timing of implementation. “Institutions make decisions based on consistent and predictable structures,” emphasized Solana Company CEO Joseph Chee.
Staking Margin as Key Reliance
The heavy reliance of institutions on Solana’s economic stability is clearly reflected in Solana Company’s financial statement structure. The company’s gross margin currently sits firmly at 97%, almost entirely supported by network staking operations.
The second-quarter 2026 report shows that staking services contributed $2.512 million of the total $2.526 million revenue. Although the flow of funds from the blockchain consensus layer looks promising, the company’s operating expenses continue to weigh on its overall balance sheet.
Solana Company was forced to post a net loss of $30.3 million during the same period. This large deficit was triggered by the accumulation of the company’s regular operating expenses, as well as valuation losses from the sale of its digital asset portfolio that it was forced to sell to the market.
A sudden overhaul of the inflation rate algorithm and updates to the network fee structure risk changing the calculation of institutional staking yield thresholds - a critical variable for validator operators fighting hard to trim operating losses.
Approving Weighted Voting Rights
In contrast to the fate of the two burning proposals, Solana Company has given its full support to SGP-0001, which contains the initial draft of the Solana Constitution. This new legislation provides institutional validators with transparent voting rights weighted in accordance with the amount of stake they hold.
This rule still maintains a safeguard mechanism for the community - token holders retain a special veto power to overturn institutional decisions in the event of a conflict of interest. This division of decision-making directions highlights the priorities of corporate operators: economic calculations must be fixed for several years, but the distribution of power must begin to be organized today. Reported from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
