Solana Facing Inflation: This Proposal Could Change Everything

Galaxy Research proposes a new voting mechanism to adjust the inflation of SOL on the Solana blockchain. This innovative system aims to go beyond the limits of binary voting by introducing a more representative decision-making method, thereby strengthening the decentralized governance of the Solana crypto ecosystem.

Galaxy Research Wants to Rethink SOL Inflation on Solana

Following the failure of a previous vote aimed at reducing the inflation of SOL, Galaxy Research proposes a new governance model for the Solana crypto ecosystem. On April 17, the firm presented the MESA (Multiple Election Stake-Weight Aggregation) proposal, an alternative voting mechanism intended to make collective decision-making smoother and more representative.

MESA would allow validators to vote not in a binary way (yes/no), but on multiple deflation rate options. The weighted average of votes would then determine the final adopted rate. This approach aims to reflect the preferences of the Solana market while avoiding the deadlocks observed in earlier proposals, notably SIMD-228.

For example, if a majority of validators choose different deflation rates — say 15%, 30%, or 33% — the system calculates a weighted average, resulting in a more representative adjusted rate (e.g., 30.6%).

A More Dynamic Crypto Governance

Galaxy emphasizes that this system is not targeting a specific rate, but rather establishing a more efficient method to reach the target inflation rate of 1.5%, currently planned under Solana’s fixed model. Today, annual inflation stands at 4.6%, with 64.7% of the total supply (i.e., 387 million SOL) already staked, according to Solana Compass.

This new model could transform Solana’s crypto governance by offering increased flexibility without compromising network stability. Galaxy Strategic Opportunities, affiliated with Galaxy, already provides staking services on Solana, which strengthens the legitimacy of its proposal.

After a 40% surge a few days ago, the more nuanced and participative approach of MESA would allow Solana to better reflect the preferences of its community. This evolution would reinforce the stability of its ecosystem while inspiring other crypto projects to rethink their governance systems in order to gain efficiency, transparency, and legitimacy.