Galaxy Research published an August 7 analysis showing Ethereum and Solana both moving to cut new token issuance. Ethereum's EIP-8361 would burn up to 100% of validator rewards once staking participation hits 50%, while Solana's SIMD-0550 and SIMD-0553 would double its disinflation rate and multiply daily SOL burns roughly twelvefold to fourteenfold.
Two of the largest proof-of-stake networks are simultaneously reconsidering how many tokens they print. Galaxy Research published an analysis on August 7 outlining how Ethereum's EIP-8361 and Solana's SIMD-0550 and SIMD-0553 could alter the economic architecture of both chains.
Ethereum would burn rewards as staking grows
EIP-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 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. The change would phase in over an 18-month period following inclusion in a future upgrade, with the target timeline placing it after the Glamsterdam upgrade, expected in fall 2026 — meaning the full effects likely wouldn't materialize until 2028.
Solana attacks supply from two angles
Solana is pursuing the same goal through two separate proposals. The first, SIMD-0550, targets the network's inflation schedule directly. Solana's annual disinflation rate currently sits at 15%. SIMD-0550 would double that to 30%.
As a result, 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 Solana 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.
Source: Crypto Briefing
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