Skip to content
Advertisement
Toly backs SGP-003 vote amid app builders’ pushback

Toly backs SGP-003 vote amid app builders’ pushback

Photo: Pachon in Motion / Pexels

Solana's co-founder calls the fee restructuring a 'no brainer' while developers warn of unpredictable costs and stifled innovation

Anatoly Yakovenko, the co-founder everyone calls Toly, has thrown his weight behind SGP-0003, a proposal that would fundamentally rewire how Solana charges for transactions. He called it a “no brainer yes vote” on August 25. The app builders who actually ship products on Solana have a rather different take.

The proposal introduces a fixed inclusion fee of 2,500 lamports for block leaders alongside a variable resource fee tied to compute units. The variable component starts at 1 lamport per 10 CUs but could climb as high as 1 lamport per 2 CUs depending on future evaluations.

Advertisement

The economics of burning tokens and building apps

Yakovenko’s pitch centers on one reassuring claim: the new fee structure should keep SOL burn rates roughly in line with current levels. A portion of the restructured fees would be burned, theoretically reducing supply pressure on SOL over time.

BlueShift, Firedancer Development, and Hylo have all signaled support for SGP-0003. Critics have labeled the proposal “yolo economics,” a term that captures their fear of unpredictable cost escalation. Some DeFi entities have voiced opposition specifically around timing, arguing that the ecosystem is still maturing and that imposing a new fee regime now could discourage experimentation.

Governance growing pains

SGP-0003 is part of Solana’s first foray into on-chain governance, replacing the traditionally off-chain decision-making process that has guided the network since its inception. Voting opened on August 23, and the proposal needs at least one-third of validators to participate for it to reach quorum.

As of August 25, the proposal had roughly 13-14% support among validators. Broader voting participation across related proposals sat below 17%.

What this means for the Solana ecosystem

Yakovenko’s endorsement carries significant weight, but it hasn’t translated into validator momentum yet. The gap between 13-14% participation and the 33% quorum threshold is substantial, and with opposition coming from the very builders Solana needs to retain, the proposal’s path forward looks uncertain.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

More in Finance

See all
Previous storyHIVE Digital Technologies projects mining margins of 36% to 52% as Bitcoin approaches $80K