Ethereum and Solana are both rethinking how much new supply they create, and the numbers are striking
Two of the largest proof-of-stake networks are simultaneously reconsidering how many tokens they print, and the proposed changes aren’t cosmetic. Galaxy Research published an analysis on August 7 outlining. . .
Two of the largest proof-of-stake networks are simultaneously reconsidering how many tokens they print, and the proposed changes aren’t cosmetic. Galaxy Research published an analysis on August 7 outlining how Ethereum’s EIP-8361 and Solana’s SIMD-0550 and SIMD-0553 could meaningfully alter the economic architecture of both chains. Ethereum’s plan: burn validator rewards based on how much ETH is stakedEIP-8361 introduces a mechanism that scales validator reward burns according to the total percentage of ETH staked on the network. If 50% of ETH ends up staked, the proposal would allow up to 100% of validator rewards to be burned. The practical impact on stakers would be significant. Current consensus-layer yields sit at roughly 2. 6%. Under EIP-8361, those yields could decline to approximately 1. 2%, effectively halving what validators earn for securing the network. AdvertisementThe changes would phase in over an 18-month period following inclusion in a future network upgrade. The target timeline places it after the Glamsterdam upgrade, which is expected in fall 2026, meaning the full effects of EIP-8361 likely wouldn’t materialize until 2028. Solana’s double play: faster disinflation and resource-based burnsSolana is attacking the supply question from two angles simultaneously. The first proposal, SIMD-0550, targets the network’s inflation schedule directly. Currently, Solana’s annual disinflation rate sits at 15%, meaning the rate at which new SOL enters circulation decreases by 15% each year. SIMD-0550 would double that to 30%. The practical consequence: Solana’s inflation would hit its terminal floor by 2029 instead of 2032, shaving three years off the timeline. Galaxy Research estimates this would reduce future SOL emissions by roughly 18. 9 million tokens. The second proposal, SIMD-0553, would overhaul Solana’s fee structure by shifting from flat transaction fees to resource-based pricing. Daily SOL burns currently sit around 650 tokens. Under SIMD-0553, that figure could jump to between 7,500 and 9,000 SOL per day, roughly a 12x to 14x increase in the rate at which SOL gets permanently removed from circulation. Both proposals have cleared an important governance hurdle, securing the 15% active stake support required to advance into formal discussions and a subsequent voting window. This represents one of the first significant tests of Solana’s on-chain governance system. Disclosure:This article was edited by Editorial Team. For more information on how we create and review content, see ourEditorial Policy.