$SOL Resolving issues with binary voting

The benefits are that a more market-driven system allows validators to express preferences along a spectrum rather than with binary elections, while maintaining predictability with a fixed inflation curve.

"Galaxy Research seeks to suggest a genuinely alternative process to achieve what we believe is the broad objective of the community, and not necessarily prescribe a particular inflation rate outcome," the firm explained.

Under the current mechanism, supply inflation starts at 8% annually, decreasing by 15% per year until it reaches 1.5%. The current inflation rate of Solana is 4.6%, and 64.7% of the total supply, or 387 million SOL, is currently staked, according to Solana Compass.

Galaxy's affiliate, Galaxy Strategic Opportunities, provides staking and validation services for Solana.