- Solana has removed a major legal risk after a judge dismissed claims against Solana Labs and the Solana Foundation in the Pump.fun lawsuit.
- A new governance change will also reduce SOL issuance faster, strengthening Solana’s long-term outlook.
Solana has received two major developments that could improve its long-term outlook. A judge dismissed claims against Solana Labs, the Solana Foundation and their executives in a lawsuit tied to Pump.fun, while SOL holders also approved a proposal to reduce new issuance at twice the previous rate.
The legal decision removes a major overhang for Solana, although Pump.fun’s parent company still faces racketeering claims. At the same time, the change to Solana’s inflation schedule could reduce the rate at which new SOL enters circulation over time.
Solana Entities Cleared From Pump.fun Lawsuit
The lawsuit began in January 2025 after investors who lost money on Pump.fun meme coins sued Baton Corporation, the platform’s parent company, over alleged unregistered securities sales.
A later amendment to the complaint added Solana Labs, the Solana Foundation and several executives as defendants. The allegations included racketeering and unlicensed money transmission.
On Aug. 31, however, a judge dismissed all claims against the Solana-related defendants. The decision removes one of the bigger legal risks surrounding Solana. A ruling against Solana Labs or the Solana Foundation could have placed financial pressure on organizations involved in developing and supporting the network.
That risk has now been reduced, although the broader lawsuit has not completely disappeared.
Baton Corporation and its three founders still face racketeering claims. That matters because Pump.fun remains one of the most important applications operating on Solana.
Pump.fun Still Creates a Risk for Solana
Pump.fun continues to generate significant activity on the Solana network.
According to the source data, the platform generated an average of about $1.2 million in net revenue per day during the 90 days ending Sept. 9. During the final 30 days of that period, Pump.fun users accounted for slightly less than half of the $361.8 million in total fees generated across Solana protocols.
That level of activity shows why developments involving Pump.fun can still affect Solana.
If Baton Corporation or its founders face a major financial or operational setback from the remaining lawsuit, Pump.fun’s activity could decline. Lower activity would also mean fewer transactions and fees generated on Solana.
The dismissal of the claims against Solana therefore removes a direct legal threat, but it does not eliminate the network’s exposure to what happens with Pump.fun.
Solana Also Changes Its Supply Schedule
The legal development comes alongside another important change for SOL holders. In late August, Solana holders approved a governance proposal that doubles the rate at which the network’s new issuance declines.
Solana will remain inflationary under the revised system, meaning new SOL will continue to enter circulation. However, the rate of dilution is now expected to fall twice as quickly as under the previous schedule.
For investors considering SOL over a multi-year period, the combination of lower future issuance and reduced legal uncertainty could become increasingly important, giving Solana a stronger fundamental setup than it had before these developments.
SOL is still well below its January 2025 all-time high, leaving the market to determine whether these improvements are enough to support a sustained recovery.
The remaining Pump.fun lawsuit also means risks have not disappeared completely. Still, the removal of Solana Labs and the Solana Foundation from the case eliminates a major source of uncertainty while the new issuance schedule improves the network’s long-term supply dynamics.
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