Galaxy Research has proposed a new voting framework designed to reduce the inflation of Solana's native token, SOL. The proposal, titled "Multiple Election Stake-Weight Aggregation" (MESA), aims to replace the traditional binary voting method with a multi-choice system, allowing validators to vote on different inflation reduction levels. The final inflation rate will be calculated based on the weighted average of these options.
Background and Challenges
Previously, Solana's inflation model was adjusted through the SIMD-228 proposal, which transitioned the inflation model from fixed to dynamic, based on community staking participation. While this approach received broad support for its goal of reducing inflation, the binary voting system failed to achieve consensus on specific parameters, highlighting the need for a more flexible voting mechanism that reflects the diverse opinions within the community.
Introducing the MESA Proposal
The MESA proposal enables validators to vote on multiple inflation reduction options rather than just selecting one. The final inflation rate is determined by calculating the weighted average of the chosen options. For example, if 5% of the community votes to keep inflation at 15%, 50% votes for a 30% reduction, and 45% votes for a 33% reduction, the resulting inflation reduction would be 30.6%. The goal is to achieve an inflation rate of 1.5% in the long term.
Benefits of the New System
The MESA voting system offers several advantages over the traditional method:
Diverse representation: Validators can select from multiple inflation reduction levels, capturing the varied opinions within the community.
Increased flexibility: The system allows for more flexible adjustments to inflation rates, avoiding reliance on a single proposal.
Stability: Despite its flexibility, the system ensures a stable inflation rate, minimizing fluctuations in the value of SOL.
Impact on Solana Network
Currently, Solana's inflation rate stands at 4.6%, with 64.7% of the total SOL supply being staked. The implementation of the MESA voting system could provide a more efficient way to adjust inflation and encourage greater participation from validators in the governance process.
Conclusion
Galaxy's MESA proposal is a significant step forward in enhancing Solana's governance system. By offering a flexible and representative approach to inflation management, it promises to support the sustainable growth of the Solana network. However, the success of the proposal depends on achieving consensus within the validator community.
