Galaxy Research has announced a strategy that will allow validators to determine the inflation rates for Solana.

Concerns regarding Solana’s inflation have intensified as a cryptocurrency research firm proposes a revised voting mechanism that may influence future inflation reduction strategies. This system aims to keep a stable terminal inflation rate of 1.5% while allowing various voting options for “yes,” each linked to different deflation levels. On April 1.5, Galaxy Research presented this initiative to the Solana community, suggesting changes to the voting framework for inflation management, referred to as “Multiple Election Stake-Weight Aggregation (MESA).” The proposal outlines a comprehensive market-oriented approach for determining the SOL emission trajectory. Moreover, the updated proposal will guarantee that validators engage in a unified voting process concerning various deflation rates, using the weighted average to determine the result. Galaxy Research further elaborated that this new adjustment was prompted by the choices made in relation to the earlier proposal (SIMD-228). In that instance, the validators consented to lower the inflation rate of SOL; nonetheless, they failed to achieve consensus on the exact parameters. Among the 910 validators who participated in the vote for proposal SIMD-228, 43.6% cast a “Yes” vote, while 27.4% voted “No.” As mentioned in our previous article, this required a minimum of 66.67% community approval. During that period, Tushar Jain, co-founder of Multicoin Capital, emphasized that this was a significant advancement and a substantial win for the governance of the Solana ecosystem. Although our proposal did not succeed in the vote, it was still a considerable achievement for Solana and its governance framework. This served as an important social scaling stress test rather than a technical one, and the network successfully managed the varying opinions and interests present. While the SIMD-228 proposal aimed to change Solana’s inflation from a fixed rate to a more dynamic, market-driven model, the new proposal intends to keep the fixed inflation rate at 1.5%. The suggested MESA system aims to address current issues by offering several “yes” choices with varying deflation rates, including 15%, 17.5%, 20%, and 25%, alongside the standard “no” and “abstain” responses. Source: Galaxy Research. Subsequently, each validator would distribute their weighted votes based on their stakes, as needed. After the “yes” votes reach the required quorum and meet the minimum threshold, “the new deflation rate will be determined by calculating the weighted average of all the ‘yes’ votes.”