Galaxy Research has developed a new model aimed at addressing the longstanding issue of inflation governance in the Solana network. The new system, called "Multiple Election Stake-Weight Aggregation" (MESA), was introduced on April 17 and aims to replace the traditional binary voting approach.
Current Governance Challenges
The existing governance system is based on a simple ‘yes’ or ‘no’ vote on changes. While most participants agree that inflation should be reduced, they seldom find consensus on how much to decrease it. An example of this is the SIMD-228 proposal, which received support but failed due to disagreements on numerical specifics.
What is MESA?
MESA alters the voting process by allowing validators to select from multiple deflation rate options rather than just a binary choice. The weight of each vote is determined by the amount of SOL staked. After voting, the system calculates a weighted average that becomes the new deflation rate.
Impact of the New Model on Solana
Currently, Solana's inflation stands at 8% and decreases by 15% per year until it reaches a terminal rate of 1.5%. The new model does not change the final target but provides a more practical way to achieve it. Approximately 64.7% of the total SOL supply is currently staked, which means that validators' decisions are crucial for the network. Approval of this proposal could stabilize SOL's supply and streamline the governance process.
The MESA proposal from Galaxy Research has the potential to significantly enhance the voting process in Solana, making it more predictable and reflective of validators' actual preferences. This, in turn, could restore investor confidence and affirm the resilience of the Solana community.
