Galaxy Research, a prominent crypto research firm, has put forward a proposal to amend the voting system that determines the future Solana inflation rate after a previous vote failed to reach a consensus. The proposal, named "Multiple Election Stake-Weight Aggregation" (MESA), aims to decrease the inflation rate of Solana's native token, SOL.

The concept behind MESA is to provide a more market-oriented approach to determining the rate of future SOL emissions. Instead of the traditional yes/no voting on inflation rates, MESA allows validators to vote on multiple deflation rates, with the weighted average of these votes determining the final outcome. This system allows validators to allocate their votes to one or multiple changes, with the collective "yes" outcomes establishing the adopted emissions curve.

The idea for this proposal stemmed from a previous proposal (SIMD-228), which indicated community consensus on reducing SOL inflation but struggled to agree on specific parameters due to the binary nature of the voting system. SIMD-228 suggested transitioning Solana's inflation system from a fixed schedule to a dynamic, market-driven model.

The MESA proposal suggests maintaining the fixed terminal inflation rate at 1.5% and presenting multiple deflation rate options for validators to vote on. If a quorum is reached, the average of the "yes" votes determines the new deflation rate. This approach aims to achieve the target terminal rate of 1.5% supply inflation by aggregating varied preferences within the community.

One of the key benefits of this proposed system is that it allows validators to express their preferences across a spectrum of choices, moving away from the binary nature of traditional voting. This approach retains predictability by maintaining a fixed inflation curve while accommodating diverse viewpoints within the community.

Currently, Solana's inflation rate stands at 4.6%, with a total of 64.7% of the total supply, equivalent to 387 million SOL, staked according to Solana Compass. Galaxy Research's affiliate, Galaxy Strategic Opportunities, provides staking and validation services for Solana, further solidifying their involvement in the network.

In conclusion, the MESA proposal by Galaxy Research represents an innovative approach to address the challenges faced in reaching a consensus on Solana's inflation rate. By introducing a more flexible and market-driven voting system, the proposal aims to streamline decision-making processes and foster community engagement in shaping the future of Solana's ecosystem.

Source: https://cointelegraph.com/news/galaxy-proposes-new-voting-system-to-reduce-solana-inflation?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound