Ethereum And Solana Weigh Changes To Token Supply Rules

• Ethereum's EIP-8361 would gradually reduce validator issuance as staking rises, potentially cutting consensus-layer yield from 2.6% to 1.2%.
• Solana's SGP-0002 could double annual disinflation to 30%, potentially reducing future emissions by an estimated 18.9 million SOL.
• Both networks are reviewing lower issuance to balance token supply, validator incentives and the long-term cost of network security.

Ethereum and Solana developers are reviewing changes to their token inflation schedules, according to Galaxy Research Vice President Lucas Tcheyan. The proposals address how much token issuance networks need for security and whether current supply policies should change. Neither network has reached a decision, with both discussions still under review.

https://twitter.com/WuBlockchain/status/2086125413932355833?s=20

Ethereum Proposal Targets Validator Issuance

Six researchers, including Ethereum Foundation researcher Justin Drake, submitted EIP-8361, called Tapered Issuance Burn. The draft would burn more validator rewards as the share of staked ETH rises.

The proposal would burn all validator issuance once half of Ethereum’s supply becomes staked. At roughly one-third staking today, consensus-layer yield would fall from about 2.6% to 1.2%.

However, MEV and priority fees would remain unchanged under the proposal. If approved, the reduction would phase in over 18 months.

EIP-8361 remains a draft and has not received a vote. Developers are considering it for Hegotá, the upgrade following Glamsterdam.

Solana Advances Two Inflation Proposals

Solana has two proposals moving through its new onchain governance system. Both have secured the required 15% support from active stake. SGP-0002 carries SIMD-0550, which would double Solana’s annual disinflation rate to 30%. 

The change would move the 1.5% terminal inflation floor forward to 2029. According to Galaxy Research, the proposal could remove an estimated 18.9 million SOL from future emissions. Discussion will continue for 16 days before the governance process advances.

SGP-0003 carries SIMD-0553, which would replace Solana’s flat per-signature fee. The proposed fee would instead scale according to transaction computing requirements.

Security Costs Drive Supply Review

Tcheyan said Ethereum and Solana face the same question about their security budgets. Stakeholders are assessing how much token issuance remains necessary for network security.

Galaxy Research said inflation rates determine future token supply. Lower issuance could change supply dynamics, while unchanged or higher issuance would continue adding tokens.

The research also noted growing attention on security costs and token value. That discussion could affect market expectations for ETH and SOL supply.

For Solana, both proposals require two-thirds of decisive stake to pass. The process includes discussion, a stake snapshot and voting across fixed governance periods.

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