D.K.
For my son (also second grader, gifted) it means he qualifies for the gifted program which is a pull out program incorporating learning about multiple disciplines (this year they are studying skeletons, learning some mechanics, reading some scientific writing, doing some experiments, dissecting owl pellets). He also does accelerated reading with 3 other kids - this means he is able to read, analyze and discuss the texts on is level. Hugely important to keeping him challenged (as well as not frustrating the kids who are still just barely reading). It means he can be excited about learning and be challenged every day instead of learning that he can coast.
Being in a gifted program does NOT mean you don't let him be a kid. It means you provide the support that helps him live up to his potential. So much better than just letting him coast and potentially get bored by school. Most gifted programs are also small. That means the kids get a lot more 1 on 1 attention from the gifted teacher than they get in the regular classroom. While that might not be 'fair', it is a big bonus.