Galaxy Research has introduced a novel "market-driven" voting system to reform Solana’s inflation mechanism, proposing a method that moves beyond binary choices and seeks to better reflect the community's nuanced preferences.
Background
- Following the controversial rejection of Solana’s SIMD-228, a proposal aimed at introducing a dynamic, deflationary emissions curve, Galaxy Research has pitched an alternative mechanism to reshape how token issuance decisions are made.
- The new model, called Multiple Election Stake-Weight Aggregation (MESA), is designed to enable validators to vote across a range of potential outcomes, as opposed to the limited yes/no/abstain framework.
- The goal is to provide a more representative view of community sentiment by calculating a weighted average of preferences based on stake distribution.
- SIMD-228 had attracted one of the highest voter turnouts in Solana governance history but failed to pass due to a lack of consensus on a singular option.
- Many in the ecosystem acknowledged that a change to the current inflation structure was warranted, but the binary voting structure constrained the collective ability to identify middle-ground solutions.
- The current model sets Solana's inflation at 8% initially, gradually decreasing by 15% annually until it hits a floor of 1.5%. At present, inflation stands at 4.6%, with nearly 65% of the total supply staked.
Why should you pay attention?
- This proposed shift could mark a pivotal moment in how major blockchain protocols approach governance and tokenomics.
- If adopted, MESA might serve as a model for other Layer-1 chains seeking to refine onchain decision-making processes.
- Additionally, it reignites the conversation around Solana's economic sustainability, validator incentives, and network security, all crucial factors for long-term value.
Who said what?
- Galaxy Research explained the rationale behind MESA, stating:
"Instead of throwing darts until the community is happy with an individual proposal, it is more efficient to simply ask each person what they want and settle on the aggregate."
- Max Resnick, lead economist at Solana-focused Anza, expressed skepticism over MESA’s practical implementation:
“Suppose I believe the best policy is 25% a year—how should I vote to make the resulting policy as close to 25% as possible?”
- He further noted that participants may vote strategically rather than truthfully, skewing results. However, Resnick still welcomed the effort to broaden the voting spectrum, stating:
“Yes/No voting forces people into separate camps which creates unproductive conversations.”
- Solana Labs co-founder Anatoly Yakovenko offered an alternative approach, suggesting:
“Pretty cool. I guess the question is why not just make it median stake weighted?”
Zooming out
- As Solana’s ecosystem matures and its community demands more sophisticated governance mechanisms, MESA may represent an inflection point in blockchain decision-making.
- While it is still under review and may face further technical and philosophical scrutiny, it reflects a growing appetite for participatory governance and tokenomics reform.
