Ethereum researchers have proposed a mechanism that could cut consensus-layer staking yields from approximately 2.6% to 1.2%, while Solana developers weigh a plan to remove an estimated 18.9 million SOL from future emissions. Neither proposal has been finalized, but both aim to trim token issuance while still funding network security.
Developers at both Ethereum and Solana are reassessing how much new token issuance their networks actually need to keep validators secure, and both are now weighing changes that would slow future supply growth. Galaxy Research Vice President Lucas Tcheyan said stakeholders in both ecosystems are questioning whether current security budgets remain appropriate given the resulting dilution. No final decisions have been made, and the proposals still face technical discussion and governance votes.
Ethereum's EIP-8361 Would Burn Validator Issuance
Six Ethereum researchers, including Ethereum Foundation researcher Justin Drake, have introduced EIP-8361, known as Tapered Issuance Burn. The proposal would progressively burn a larger share of validator rewards as more ETH moves into staking, and once 50% of Ethereum's supply is staked, all consensus-layer issuance would be burned.
At the current staking rate of roughly one-third of ETH supply, the change would cut consensus-layer yields from about 2.6% to 1.2%, while priority fees and maximal extractable value revenue stay unaffected. Supporters argue the current model could push staking participation too high, concentrating control among large operators and liquid staking protocols. Critics counter that lower yields could make solo staking less viable and reduce Ethereum's appeal to institutional investors.
EIP-8361 remains a draft with no implementation schedule, and if it is chosen for Ethereum's proposed Hegotá upgrade, it would be unlikely to take effect before 2027.
Solana Weighs Faster Disinflation and Fee Burns
Solana is evaluating two proposals through its onchain governance system. SIMD-0550 would double the network's annual disinflation rate to 30%, pulling forward the 1.5% terminal inflation rate from 2032 to 2029 and removing an estimated 18.9 million SOL from future emissions.
A second proposal, SIMD-0553, would replace Solana's flat signature fee with a resource-based fee tied to each transaction's computing cost, with the network burning those fees entirely. Estimates suggest that change could push daily SOL burns from around 650 tokens to between 7,500 and 9,000. Both proposals have secured enough initial stake support to enter formal discussion, though passage still requires approval from two-thirds of participating stake.
Security Costs Now Shape Supply Expectations
Ethereum and Solana used token issuance to reward validators while their networks were still developing. As both mature, stakeholders are asking whether security should increasingly come from transaction activity instead of new token emissions. Galaxy Research argued that supply reforms alone are unlikely to determine either asset's long-term value, since sustainable demand for blockspace and institutional adoption matter more.
Still, the debates show investors increasingly tying network security costs to token value, and any changes adopted could push markets to reassess long-term supply expectations for both ETH and SOL.
Source: CCN
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