The new scheme allows you to change the inflation of Solana Cryptocurrency (SOL)

After rejecting the improvement proposal, identified as “SIMD-0228,” new initiatives emerged in the ecosystem after dealing with inflation and attempting to reform the Token Emission System (SUN).

And a month later, the net validator I presented a new project To mitigate the issues linked to Solana’s native tokens.

The initiative was featured in Solana and called the Improvement Forum “A collection of multiple election interests” Or aggregation of weight participation in multiple elections (table). So Galaxy will raise a technical scheme to gradually reduce inflation Reach sustainable terminal rates. The goal, according to supporters, is to strengthen the economy of the network’s native tokens.

What is the current publishing system proposed by Galaxy Research?

The current SUN emissions system operates on a model that combines initial inflation rates with 8%, with annual reductions down 15% until a gradual reach of 15%. 1.5% annual emissions and stabilize there. If no changes are made to the current model according to the estimates in the Galaxy document, Solana will reach its terminal rate within an estimated 7.4 years.

This current model has generated criticism of its impact on solar circulating supply. This could serve as a pressure coefficient for its long-term value. According to Galaxy, there is a “common belief that inflation is too high.”

This company’s proposal refers to a new voting model that defines the inflation curve of the solar for the following purposes: It accelerates the rhythm of the network reaching its emission rate of 1.5%. In this case, according to the “table” initiative, instead of a binary decision (you must vote “yes” or “no” before a proposal such as SIMD-0228), Validators vote for multiple deflation rates The results are then determined by the additional average.

The following graphics attached to the text of Galaxy’s proposal reflect that Sol Inflation is currently at an annual level of 4.6%, indicating that different DEFLation rates (color lines) can significantly reduce the time required to reach the 1.5% target.

The suggestion in this table allows variators to select one or more predefined options, such as maintaining 15% of the current rate or increasing to 20%, 25%, 30%, 32.5%. That’s what each of these elections is It is weighted by validator piles that support itand the final result is the average weighting rate.

For example, if 5% of the stock voted to keep 50% to select 33% by increasing the rate by 15%, 50% to 30%, the final result is about 30% annual deflation. With 30% deflation, The goal is about 3. Filled in 7 yearsAccording to Galaxy, it’s almost half the time it takes at current publication levels.

Galaxy Research believes this new approach will allow us to reach a more representative contract without risking the predictability of the Solana emissions model.

As it maintains the structure of the inflation curve, but is a proposal to adjust the voting mechanism, it theoretically does not introduce sudden changes that could create a lot of uncertainty among ecosystem participants.