Galaxy Research Proposes Dynamic Voting Model to Tackle Solana Inflation
In a bid to improve Solana’s monetary policy, Galaxy Research has introduced a novel governance proposal aimed at adjusting how the network determines inflation rates for its native token, SOL.
Unveiled on April 17, the proposal—called Multiple Election Stake-Weight Aggregation (MESA)—presents a more adaptive voting system that enables validators to choose from a range of deflationary options rather than being constrained to binary “yes” or “no” votes.
This marks a significant shift in how decentralized protocol governance could function.
Why Solana’s Inflation Model Needs Reform
Solana’s current inflation schedule was designed to incentivize early staking and secure the network.
It begins at 8% annually and declines by 15% each year until it stabilizes at a terminal rate of 1.5%. According to Solana Compass, the current inflation rate stands at 4.6%, with approximately 64.7% of the SOL supply—about 387 million tokens—currently staked.
Also read: Yield Farming vs Staking: Key Differences Explained
While this model has served its initial purpose, many stakeholders now believe it requires updating. Concerns have grown that prolonged inflation could distort validator incentives, devalue the token, and negatively impact long-term holders.
This sentiment led to SIMD-228, a prior proposal aimed at replacing the fixed inflation model with a dynamic, market-responsive approach.
Despite widespread support for lowering inflation, the binary structure of the vote prevented consensus on specific parameters—ultimately causing the proposal to fail.
How Galaxy Research Proposes a Solution
Galaxy Research’s MESA addresses this limitation by introducing a spectrum-based voting mechanism.
Instead of voting on a single proposal, validators can allocate their voting power across multiple deflation rate options. The final result is calculated as a weighted average of all votes cast.
Also read: Altcoins with High Staking Rewards: Earn Passive Income in Crypto
For example, if 5% of votes support no change, 50% vote for a 30% reduction, and 45% support a 33% reduction, the resulting deflation rate would be 30.6%. This model captures nuanced community preferences while maintaining the terminal inflation target of 1.5%.
Benefits of MESA Over Binary Voting
The advantages of Galaxy Research’s MESA are multi-fold:
- More expressive voting: Validators can convey detailed preferences rather than binary choices.
- Fewer failed proposals: The need for multiple rounds of voting is eliminated.
- Economic alignment: Decisions better reflect validator incentives and network conditions.
- Predictability: The long-term inflation curve remains fixed and reliable.
Beyond Solana, MESA could become a model for other Layer-1 networks—such as Ethereum, Cosmos, or Polkadot—where complex governance structures often lead to stagnation.
If successfully implemented, Galaxy Research’s MESA could demonstrate how more flexible, data-driven governance mechanisms might revitalize decentralized decision-making.
Also read: How to Buy Solana: A Step-by-Step Guide for Investors
The proposal still requires robust community backing, thorough technical review, and successful navigation of Solana’s on-chain governance process.
But if adopted, MESA could mark a turning point in how blockchain protocols approach governance—balancing adaptability with stability in an increasingly dynamic crypto ecosystem.
