Crypto research firm Galaxy Research has made a proposal to adjust the voting system that decides the outcome of future Solana inflation following the failure to come to a consensus in a previous vote.

On April 17, Galaxy introduced a Solana proposal called “Multiple Election Stake-Weight Aggregation” (MESA) to reduce the inflation rate of its native token, SOL (SOL). The researchers described the proposal as a “more market-based approach to agreeing on the rate of future SOL emissions.”

Rather than using traditional yes/no voting for inflation rates, MESA allows validators to vote on multiple deflation rates and uses the weighted average as the outcome.

“Instead of cycling through inflation reduction proposals until one passes, what if validators could allocate their votes to one or many changes, with the aggregate of ‘yes’ outcomes becoming the adopted emissions curve?” Galaxy explained.  

The motivation for the concept comes from a previous proposal (SIMD-228), which showed community agreement that SOL inflation should be reduced, but the binary voting system couldn’t find consensus on specific parameters. 

SIMD-228 proposed to change Solana’s inflation system from a fixed schedule to a dynamic, market-based model. 

The new proposal suggests maintaining the fixed, terminal inflation rate at 1.5% and sets forth multiple outcomes that create multiple ‘yes’ voting options with different deflation rates from which an average is aggregated if a quorum is reached. 

For example, if 5% vote for no change, remaining at 15% deflation, 50% vote for a 30% deflation rate, and 45% vote for 33%, the new deflation rate would be calculated as the aggregate at 30.6%. The target is to reach the terminal rate of 1.5% supply inflation. 

Predicted inflation curves under new voting proposal. Source: Galaxy Digital 

Solving problems with binary voting 

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

“Galaxy Research seeks to suggest a genuinely alternative process to achieving what we believe is the community’s broad goal, and not necessarily proscribe any particular inflation rate outcome,” the firm explained. 

Related: Solana upgrades will strengthen network but squeeze validators — VanEck

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

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

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Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation. 

The bill proposes to tax traders when they sell their cryptocurrency for fiat or pay for goods and services, but crypto-to-crypto and transfers between wallets owned by the same user will be exempt, Slovenia’s Finance Ministry said in an April 17 statement.

Under the proposed legislation, crypto tax will be aligned with existing tax laws. Slovenia taxpayers will be required to keep a record of all their transactions for annual tax returns. The tax base would be calculated on profits by subtracting the purchase price from the sale price. 

In a statement to the Slovenia Times, finance minister Klemen Boštjančič said it’s unreasonable that crypto trading for individuals isn’t currently taxed in the country. 

“The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all,” he said in a statement translated from Slovenian.

New tax could stifle crypto in Slovenia, lawmaker says 

Jernej Vrtovec, a member of Slovenia’s national assembly and New Slovenia opposition party, slammed the proposal in an April 16 statement to X, arguing it could stifle crypto growth in the country. 

“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” he said in a post also translated from Slovenian.

“With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.” 

Source: Jernej Vrtovec

The proposal is open to public consultation until May 5. If Slovenian lawmakers pass the bill, it will go into effect on Jan. 1, 2026. 

Slovenia introduced a 10% tax on crypto withdrawals and payments in 2023, but capital gains from occasional crypto trading are not taxed, according to the crypto tax platform Token Tax. 

Related: NFT trader faces prison for $13M tax fraud on CryptoPunk profits

Crypto activity can also currently be exempt from tax if it’s considered a hobby. Business activity, such as mining or staking, is subject to income tax. 

A previous bill proposed in April 2022 planned to levy a 5% tax on profits over 10,000 euros ($11,372), but it was never passed into law. 

Slovenia issued the first digital sovereign bond in the European Union on July 25 last year. It had a nominal size of 30 million euros ($32.5 million) with a 3.65% coupon and a maturity date of Nov. 25 that year. 

The number of crypto users in Slovenia is projected to reach roughly 98,000 in 2025, according to online data platform Statisa, with a penetration rate of 4.6% among its population of 2.12 million people. While the projected revenue for the country’s crypto market is slated to hit $2.8 million. 

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One of Arizona’s crypto reserve bills has been passed by the House and is now one successful vote away from heading to the governor’s desk for official approval.

Arizona’s Strategic Digital Assets Reserve Bill (SB 1373) was approved on April 17 by the House Committee of the Whole, which involves 60 House members weighing in on the bill before a third and final reading and a full floor vote.

Source: Bitcoin Laws

SB 1373 seeks to establish a Digital Assets Strategic Reserve Fund made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer. 

Arizona’s treasurer would be permitted to invest up to 10% of the fund’s total monies in any fiscal year in digital assets. The treasurer would also be able to loan the fund’s assets in order to increase returns, provided it doesn’t increase financial risks.

However, a Senate-approved SB 1373 may be set back by Arizona Governor Katie Hobbs, who recently pledged to veto all bills until the legislature passes a bill for disability funding.

Hobbs also has a history of vetoing bills before the House and has vetoed 15 bills sent to her desk this week alone.

Arizona is the new leader in the state Bitcoin reserve race

SB 1373 has been passing through Arizona’s legislature alongside the Arizona Strategic Bitcoin Reserve Act (SB 1025), which only includes Bitcoin (BTC).

The bill proposes allowing Arizona’s treasury and state retirement system to invest up to 10% of the available funds into Bitcoin.

SB 1025 also passed Arizona’s House Committee of the Whole on April 1 and is awaiting a full floor vote.

Related: Binance helps countries with Bitcoin reserves, crypto policies, says CEO

Race to establish a Bitcoin reserve at the state level. Source: Bitcoin Laws

Utah passed Bitcoin legislation on March 7 but scrapped the cornerstone provision establishing the Bitcoin reserve in the final reading.

The Texas Senate passed a Bitcoin reserve bill on March 6, while a similar bill recently passed through New Hampshire’s House.

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