Galaxy Digital proposes new voting framework to reduce Solana inflation

The Galaxy Digital research team has unveiled a proposal to reform how Solana adjusts its tokens inflation rate.

Part of the proposal introduces a new voting mechanism called multiple electoral elections. The objective is to allow validators to collectively determine the future deflation rates for Solana (GROUND) More efficiently and inclusive, according to a shared note with Crypto.News.

The proposal describes a system where validators vote on a range of predefined deflation rates rather than on a single proposal “yes” or “no”, according to a note shared with crypto.News.

This deals with the criticism that the recent SIMD-228 of Solana Vote on inflation was too binary to capture the varied preferences of the community.

Instead of forcing participants to merge around a rigid result, Mesa aggregated votes over a spectrum, like 15%, 20%, 25%, etc., and apply the weighted average as a new deflation rate.

As part of the Mesa approach, the current disinflationist curve with a 1.5% terminal inflation rate would remain intact. What would change is the speed at which Solana reaches this point of ending.

A simulated example illustrates how an annual deflation rate of 30.6% could emerge from the voting aggregation.

Predictability is taken into account

The Galaxy team Maintains that the method preserves predictability while more precisely reflecting the preferences of the collective market – avoiding the repeated dead ends of governance.

“Instead of throwing darts until the community is satisfied with an individual proposal,” said the proposal, “it is more effective to simply ask each person what they want and to settle on the aggregate.”

The proposal does not argue for a specific deflation rate and invites community comments to the details of the implementation, including the distribution of votes and quorum thresholds.

Galaxy’s affiliate of Jaunter could potentially benefit from the result, but emphasizes the neutrality of the proposal concerning the actual rate chosen. Community discussions and an official governance vote are expected in the coming weeks.