Source: Cointelegraph Original: "{title}"
Cryptocurrency research firm Galaxy Research has proposed a new voting system to adjust the future inflation rate of Solana, following a previous vote that failed to reach a consensus.
On April 17, Galaxy introduced a Solana proposal called "Multi-Weighted Election Aggregation" (MESA), aimed at reducing the inflation rate of its native token SOL. Researchers described the proposal as "a more market-oriented way to reach consensus on the future issuance rate of SOL."
Unlike traditional yes/no votes on inflation rates, MESA allows validators to vote on multiple deflation rates and uses a weighted average as the final result.
Galaxy explained, "Instead of repeatedly proposing inflation reduction measures until one is approved, it is better to allow validators to allocate their votes to one or more change proposals, determining the final issuance curve through the aggregation of 'yes' votes."
This concept stems from a previous proposal (SIMD-228). The proposal indicated that the community unanimously agreed that the SOL inflation rate should be reduced, but the binary voting system could not reach a consensus on specific parameters.
SIMD-228 proposed changing Solana's inflation system from a fixed schedule to a dynamic market-oriented model.
The new proposal suggests fixing the final inflation rate at 1.5% and setting multiple options to provide several "yes" voting choices for different deflation rates. When a quorum is reached, these choices will be averaged based on their weights.
For example, if 5% of the votes support maintaining the status quo (15% deflation rate), 50% support a 30% deflation rate, and 45% support a 33% deflation rate, the new deflation rate will be calculated as a weighted average of 30.6%. The goal is to ultimately achieve a 1.5% supply inflation rate.
This more market-oriented system allows validators to express preferences within a range rather than being limited to binary choices, while maintaining predictability through a fixed inflation curve.
The company explained, "Galaxy Research is committed to proposing a true alternative to achieve what we believe is a widely shared community goal, rather than dictating any specific inflation rate outcome."
Under the current mechanism, the supply inflation rate starts at 8% per year and decreases by 15% each year until it reaches 1.5%. According to Solana Compass data, Solana's current inflation rate is 4.6%, with 64.7% of the total supply (i.e., 387 million SOL) currently staked.
Galaxy's affiliate, Galaxy Strategic Opportunities, provides staking and validation services for Solana.
Related: Surge in capital inflow to the Solana network, will SOL prices follow suit?
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