Solana On-Chain Activity Surges as Fee Revenue Jumps 80% in Three Months

On-chain activity on the Solana network has risen sharply, lifting fee revenue and transaction volumes. A governance proposal to slow the pace of new SOL issuance has also been approved.

The Block reported on August 31 that Solana’s fee revenue stood at a seven-day average of about 9,200 SOL as of August 27. That was more than 80% higher than three months earlier. Non-vote transactions, which exclude validator voting activity, reached a record 191 million on a seven-day basis, more than double the 88 million recorded a year earlier.

Jito tips paid to validators also increased. Average daily Jito tips over the past week rose 26% from a week earlier to 2,073 SOL. The increase suggests on-chain activity on the Solana network has been strengthening as users pay more to prioritize transactions.

The SGP-0002 proposal, which would slow the growth of Solana’s new token supply, passed on August 28. Known as “Double Disinflation,” it won more than 67% support, slightly above the 66.67% threshold required for approval.

A total of 1,326 validators took part in the vote, producing turnout of 60.7%. That was the highest participation rate in Solana’s on-chain governance history.

The proposal’s core measure is to double the annual pace of inflation reduction to 30% from 15%. That would cut new supply by about 18.9 million SOL over the next six years compared with the previous issuance schedule.

With fewer new tokens set to be issued, staking rewards for validators will also decline. The current staking reward rate of about 5.25% is forecast to fall to about 2.25% by the third year. That could weaken profitability for smaller independent validators that depend more on inflation-based rewards than on transaction fees.

The proposal’s effect on ordinary users is expected to be limited. Because it changes Solana’s issuance structure and validator compensation, transaction speeds and fees paid by users are not expected to change materially.