Solana Eyes Market-Based Inflation Model as Galaxy Proposes MESA to Replace SIMD-228

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After stakeholders rejected Solana’s [SOL] SIMD-228 proposal to slash inflation by 80%, Galaxy Digital has introduced a fresh, market-based alternative to determine SOL’s future emissions.

Unveiled as the Multiple Election Stake-Weight Aggregation (MESA), the proposal aims to shift Solana’s inflation mechanism from a static model to a more flexible, democratic approach. According to Galaxy, the new system would allow validators—Solana’s node operators who secure the network through staking—to periodically vote on a range of deflation rates. The final rate adopted would be the median of these votes.

We just introduced a new Solana proposal called Multiple Election Stake-Weight Aggregation (MESA) to reduce SOL inflation: a more market-based approach to agreeing on the rate of future SOL emissions.https://t.co/mcVdkRiM8y

— Galaxy Research (@glxyresearch) April 17, 2025

This marks a significant departure from SIMD-228, which proposed a one-time vote and a dynamic inflation model based on staking demand. In contrast, MESA would be recurring and hinge on a fixed disinflationary curve.

However, not all stakeholders are convinced. Tushar Jain, co-founder of Multicoin Capital—the firm behind the original SIMD-228—voiced concerns about the new proposal. Jain argued that MESA could burden validators with frequent governance responsibilities and might be vulnerable to manipulation.

This is an interesting Solana Inflation Reduction proposal. There are a couple of issues to work through:

1. This voting mechanism incentivizes gaming. For example, if I think the market would reduce inflation by X but I want to reduce inflation more aggressively, then I am… https://t.co/7Hr8HcLM4a

— Tushar Jain (@TusharJain_) April 18, 2025

“It increases the governance burden on stakers who might not want to incur this cognitive load of deciding what inflation rate to vote for every epoch,” Jain noted.

Some critics also warned that the system could foster uncertainty and deter long-term investors. Yet, Solana co-founder Anatoly Yakovenko praised the concept as “cool,” suggesting it could work if votes are weighted by stake size.

Currently, SOL’s inflation rate stands at 5% per year, with a long-term target of 1.5% through a 15% annual disinflation schedule. High inflation has been criticized for diluting the token’s value, making consensus on a sustainable model increasingly urgent.

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Despite the governance back-and-forth, whale activity around SOL has surged, as shown by the green bars on the Whale vs. Retail Delta indicator. If this trend continues, analysts suggest a price move toward $150 could be on the horizon.

Whether Galaxy’s MESA proposal gains traction remains uncertain, but it has undoubtedly reignited a critical discussion around Solana’s economic future.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.