Altcoins News

Story: Solana’s New Inflation Proposal Divides the Crypto Community

By Sakamoto Nashi

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A new proposal to change how Solana (SOL) controls its inflation is stirring conversation among crypto stakeholders.

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Galaxy’s new idea, called Multiple Election Stake-Weight Aggregation (MESA), is designed to give Solana validators more control over how new coins are printed.

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The goal of this method is to make inflation more flexible and reactive to market conditions.

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Solana’s inflation model has long been a topic of debate. Currently, the network issues new tokens at a rate of 5% per year, with plans to bring this number down to 1.

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In March, an earlier proposal known as SIMD-228 attempted to solve this by suggesting an 80% cut in inflation. While bold, that plan was rejected by the community.

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But this approach comes with its own set of concerns.

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Tushar Jain, co-founder of Multicoin Capital, voiced skepticism about the MESA proposal. Jain's firm was also behind the previous SIMD-228 proposal that failed to pass.

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According to Jain, asking stakers to vote repeatedly on inflation settings is unrealistic and might discourage participation.

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Jain also warned that MESA could be manipulated or exploited if not carefully implemented, potentially harming the network’s credibility.

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Support from Solana’s founder and community discussion

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Despite the criticism, Solana co-founder Anatoly Yakovenko had a different perspective. He called the proposal “cool” and suggested that vote outcomes should be weighted based on…

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The crypto community remains divided, with some seeing the proposal as a step toward decentralization, while others worry it may create uncertainty for investors and slow adoption.

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Meanwhile, some investors seem to be unfazed by the debate. On-chain data shows that large holders—known as whales—have been increasing their positions in SOL.

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If this trend continues, analysts suggest that Solana could test the $150 level in the near future, especially if broader market conditions remain favorable.

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What’s next for Solana’s inflation model?

The Currency Analytics

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