Solana Blockchain Network Enters Second Attempt at Dynamic Inflation Policy Reform Proposal

Solana Inflation Reform Gets Second Try From Galaxy Research

Galaxy Research has revised its proposal for a dynamic inflation policy on the Solana blockchain network, attempting to address concerns and criticisms from the community. The new pitch seeks to create a more decentralized and adaptive approach to inflation management.

In their initial attempt, Galaxy Research proposed an averaging mechanism to determine the desired emission rate, which drew criticism from core developers like Max Resnick of Anza. Resnick argued that this method would incentivize tactical voting rather than truthful submissions, potentially distorting the outcome.

Galaxy’s revised proposal introduces a median-based approach, selecting the middle value of submitted preferences. This shift aims to eliminate the strategic voting issue raised by Resnick and others. By choosing the median, Galaxy hopes to create an environment where participants are encouraged to submit their honest inflation rates rather than manipulating the outcome for personal gain.

However, some key implementation details remain open to debate. The proposal does not specify how many “YES” buckets should be included in the voting process or whether SIMD-228’s 33% quorum and two-thirds super-majority thresholds should carry over into this new system. Additionally, Galaxy invites discussion on whether a weighted average is truly the fairest way to collapse the vote.

The proposal also touches on potential future adjustments, acknowledging that Solana’s inflation mechanism would need to adapt in response to changes in market conditions or other unforeseen circumstances.

Source: https://bitcoinist.com/solana-inflation-reform-galaxy-research/