Inflation

Galaxy proposed the MESA consensus method to address the inflation governance issue of Solana

ChainCatcher message, recently, Galaxy Research submitted a new proposal to the Solana community aimed at reforming the network's inflation governance discussion through a method called Multi-Election Staking Weight Aggregation (MESA). This mechanism attempts to introduce a market-driven process to optimize the SOL emission curve without relying on a single outcome vote. The proposed method will not change Solana's ultimate goal of achieving a 1.5% final inflation rate, but it may significantly shorten the timeline to reach that goal based on community voting results.According to Galaxy's predictions, if the current 15% deflation rate is maintained, the network will reach its final inflation rate at epoch 2,135. Increasing the deflation rate will bring this point forward. In the current Solana system, inflation follows a fixed, time-related curve, aiming for a final inflation rate of 1.5%. However, Galaxy points out that previous votes indicated that while there is a general consensus that the inflation rate is above necessary levels, reaching an agreement on adjusting parameters has been challenging. Galaxy's new proposal offers an alternative that allows validators to choose from multiple predetermined deflation rates, with the result determined by the weighted average of these votes. MESA voting will not dynamically adjust inflation based on real-time metrics but will enforce a fixed anti-inflation trajectory, and once approved, the deflation rate will be adjusted according to the collective opinion of validators.It is reported that this mechanism is inspired by the previous proposal SIMD-228. Although the community generally supports lowering the SOL inflation rate, the binary voting mechanism has made it difficult to reach a consensus on specific parameters, resulting in the proposal's failure to pass.

4E: The escalation of the trade war threatens to overwhelm the benefits of slowing inflation, leading to declines in both the US stock market and the cryptocurrency market

ChainCatcher news reports that, according to 4E monitoring, the threat of an escalation in the China-U.S. tariff war has overshadowed the positive effects of slowing inflation. Investor concerns have taken precedence, and U.S. stocks failed to maintain Wednesday's significant rebound. On Thursday, the three major indices at one point dropped by at least 5%, although the decline narrowed towards the end of trading. By the close, the S&P 500 index fell by 3.5%, having at one point dropped by 6.3%, nearing the 7% first-level circuit breaker, marking the largest intraday drop since March 2020; the Nasdaq fell by 4.31%, and the Dow Jones by 2.5%. Major tech stocks collectively declined, with the seven giants index dropping by 6.67%.In the cryptocurrency market, the strong rebound from the previous day reversed sharply last night alongside the U.S. stock market. Bitcoin fell from $82,000 to a low of $78,464, nearly erasing all gains from the previous day. As of the time of writing, it is reported at $80,258, down 2.67%. Among the top ten mainstream coins, Ethereum performed the weakest, influenced by whale sell-offs and the decoupling of sUSD, briefly falling below $1,500. Before the deadline, it is reported at $1,541, down 6% in nearly 24 hours.In the forex commodities sector, the U.S. dollar index fell by 1.89%, marking the largest single-day drop since 2022. Oil prices dropped over 3% due to weak supply and demand expectations. Risk aversion surged, with gold reaching $3,220, setting a new historical high.Latest data shows that the U.S. March CPI fell short of expectations across the board, but the impact of tariffs has yet to be fully realized, which may soothe investors in the future. As Trump's chaotic tariff policies continue to disrupt the market, expectations of a tightening global supply chain have intensified, raising broader concerns about an economic recession. The market remains skeptical about whether the 90-day tariff delay can lead to substantial negotiation outcomes.
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