- Galaxy submitted a new inflation proposal for Solana.
- The proposal, as SIMD-228, caused mixed reactions of key players.
After the stakeholders rejected Solana (soil) The 80% inflation reduction proposal via SIMD-228 in March, Galaxy launched another approach. According to the company, the new inflation model would be “based on the market” to define future soil inflation.
“We have just introduced a new Solana proposal called multiple electoral elections, weight aggregation (MESA) to reduce the inflation of resolution: a market -based approach to agree on the rate of future soil emissions.”
The proposal would allow validators (node operators who return soil to guarantee the safety and production of blocks) to vote periodically (multiple deflation rate) and to settle the median result of the vote.
The average result (deflation rate) would then be adopted.
Soil inflation problem
However, the proposal differs from SIMD-228 in two ways. First, SIMD-228 was a single unique vote, while Galaxy’s approach consisted of several votes to obtain a median number.
In addition, SIMD-228 was dynamic according to the demand for clearing. On the contrary, the Galaxy Mesa looks at a fixed deflationary curve.
Reacting to the proposal, Tushair Jain, co-founder of Multicoin Capital, the company behind the SIMD-228 rejected, highlighted Key problems with the approach.
According to Jain, the proposal could easily be exploited, increase the “governance burden” to the stakeholders and does not respond to the demand for stimulation.
“This increases the burden of governance for employment people who may not want to cause this cognitive charge to decide which inflation rate to vote for each era. A unique vote is much easier for most stakers to participate.
In addition, some suggested that the approach would introduce uncertainty and touch investors.
For his part, Anatoly Yakavenko described the proposal for “cool“And suggested that this should be weighted by the median internship.
Currently, Solana is looking for a long -term inflation rate of 1.5%, which is now 5% per year (tokens issuing). It aims to achieve this thanks to an annual fixed disinflationist curve by 15%.
Critics argued that high inflation is soil due to the increase in supply. However, the creation of a new inflation calendar remained elusive after last month’s rejection of the SIMD-228.
It remains to be seen if the last proposal will obtain a consensus among the key players.
Meanwhile, whale positions have increased on Altcoin, as shown in the green bars on the Delta Whale VS Retail indicator. A movement around $ 150 could be possible if the whales increased exposure on soil.
Source: Hyblock
