Galaxy proposes consensus method to address Solana inflation debate
The post Galaxy proposes consensus method to address Solana inflation debate appeared on BitcoinEthereumNews.com.
Galaxy Research has submitted a new proposal to the Solana (SOL) community to reform the network’s inflation governance discussion through a method called Multiple Election Stake-Weight Aggregation (MESA), according to a filing published on April 17. The mechanism seeks to introduce a market-driven process to refine the SOL emissions curve without relying on single-outcome votes. The proposed method would not change Solana’s ultimate goal of reaching a 1.5% terminal inflation rate but could substantially accelerate the timeline, depending on the outcome of the community’s vote. According to Galaxy’s projections, maintaining the current 15% deflation rate would see the network reach its terminal rate around epoch 2,135, approximately 7.4 epoch years from epoch 772. Steepening the deflation rate would bring this point closer. Addressing inflation Concerns about Solana’s inflation have further intensified this year. The network’s annualized inflation rate rose by 30.5% after implementing a new priority fee distribution mechanism under Solana Improvement Document 96 (SIMD-96), approved in May 2024. This change redirected all priority fees to validators instead of burning half, which reduced the daily Solana burn from nearly 18,000 SOL to around 1,000 SOL. Under the current Solana system, inflation follows a fixed, time-dependent curve that targets a 1.5% terminal inflation rate. However, Galaxy noted that prior votes, such as Solana Improvement Document 228 (SIMD-228), revealed challenges in reaching a consensus on adjusting parameters despite broad agreement that inflation is higher than necessary. SIMD-228 proposed dynamic inflation adjustments based on staking participation and was ultimately rejected on March 14. It secured 61.39% approval, falling short of the 66.67% threshold required for passage. Helius Labs CEO Mert Mumtaz commented that the vote highlighted the need for better governance tools. At the same time, Solana Labs co-founder Anatoly Yakovenko argued for the importance of active validators over passive staker participation. MESA…
