Solana’s 80% inflation cut proposal was rejected in March, prompting Galaxy to submit a new proposal called Multiple Election Stake-Weight Aggregation (MESA). This new proposal aims to reduce SOL inflation by allowing validators to vote periodically and settle on a median deflation rate. However, some key players have raised concerns about the proposal, citing potential exploitation, increased governance burden, and lack of addressing staking demand.
The proposal differs from the previous one in that it involves multiple votes to determine the median number, as opposed to a single vote. Additionally, while the previous proposal was dynamic based on staking demand, MESA aims for a fixed deflationary curve. This has led to mixed reactions from the community, with some labeling it as “cool” and suggesting it should be median-stake weighted.
Solana currently seeks a long-term inflation rate of 1.5% but is facing challenges in creating a new inflation schedule after the rejection of SIMD-228. Critics argue that high inflation devalues SOL due to increased supply, but finding a consensus on the inflation rate has proven to be difficult. The success of the latest proposal will depend on whether key players can agree on the approach.
Meanwhile, whale positions on the altcoin have been increasing, as indicated by the Whale vs. Retail Delta indicator showing green bars. This increase in whale exposure could potentially push SOL towards $150 if sustained. Despite the uncertainties surrounding the new inflation proposal, the market seems to be optimistic about SOL’s future price movements.
In conclusion, Solana’s inflation proposal continues to be a topic of discussion among stakeholders, with Galaxy’s MESA proposal offering a market-based approach to determining SOL’s future inflation rate. While some have raised concerns about the proposal, others see it as a positive step towards reducing inflation and creating stability in the SOL ecosystem. With whale positions on the rise, there is potential for SOL to reach new highs if investor confidence remains strong. Ultimately, the success of the proposal will depend on whether consensus can be reached among key players in the Solana community.
