Ethereum and Solana are considering proposals to reduce token issuance, but Galaxy Research says supply changes alone will not reprice either asset.
Galaxy told clients that demand remains the main force determining ETH and SOL prices. Galaxy Vice President of Research Lucas Tcheyan wrote that demand decides where the tokens will go next. His comments addressed issuance proposals under review across both networks.
Ethereum EIP 8361 Targets Validator Issuance
EIP-8361 introduces a “tapered issuance burn” for validator rewards. Rewards would fall to zero once 50% of Ether supply is staked.
About one-third of ETH supply is staked. Under the proposal, consensus-layer yield would decline from around 2.6% to 1.2% at today’s rate.
Six researchers filed EIP-8361, including Ethereum Foundation researcher Justin Drake. The plan would roll out over 18 months, giving stakers nearly two years.
No vote has occurred. The proposal is being considered for Hegotá after Glamsterdam, with selection continuing through November.
Approval would likely not reach Ethereum until well into 2027. Aave founder Stani Kulechov and Sharplink oppose the proposal.
Sharplink CEO Joseph Chalom argued validators could operate at a loss after hardware and electricity costs. A validator survey recorded 99.77% opposition.
During the August 6 All Core Devs call, the presenting author raised withdrawing the proposal entirely.
Solana Proposals Accelerate Disinflation and Fee Burns
Solana is advancing two proposals through its new on-chain governance system. SIMD-0550, also called SGP-0002, was written by Helius engineers Lostin and 0xIchigo.
It would double annual disinflation to 30% and bring the 1.5% terminal floor forward to 2029 from 2032. The change would remove about 18.9 million SOL from future emissions.
Under the authors’ 68% staking-participation scenario, yield starts at 5.84%. It falls to 4.34% after one year, 3% after two years, and 2.25% after three years.
SIMD-0553, or SGP-0003, comes from Temporal’s cavemanloverboy. It would replace the flat per-signature fee with a resource-based charge based on transaction compute demand.
Those fees would be burned outright. Galaxy estimated daily SOL burns could rise from roughly 650 to between 7,500 and 9,000.
At current prices, daily burns could increase from about $47,000 to as much as $650,000. Even then, roughly 60,000 SOL enters circulation through daily inflation.
Galaxy Says Demand Remains the Pricing Driver
Galaxy said Solana’s proposals drew less opposition than Ethereum’s because versions circulated for over a year.
Both proposals cleared the 15% active-stake threshold required for discussion. They need two-thirds of the decisive stake to pass, with discussion ending August 22, 2026.
DeFi Development Corp. Nasdaq: DFDV holds SOL as its primary reserve asset. It said August 4 it supports both proposals and will vote yes.
