Two of the largest proof-of-stake blockchain networks are simultaneously overhauling how new tokens enter circulation, with proposals that could substantially reshape the economic architecture of both chains. The parallel timing underscores an industry-wide focus on sustainable token economics that has grown since Ethereum's EIP-1559 introduced base-fee burning in 2021. A Galaxy Research analysis published on August 7 examined how Ethereum's EIP-8361 alongside Solana's SIMD-0550 and SIMD-0553 could materially alter the supply dynamics of each network.

Ethereum's EIP-8361: Scaling Validator Reward Burns

Ethereum's proposal, EIP-8361, introduces a mechanism that adjusts validator reward burns in proportion to the total percentage of ETH staked. Under the proposal, if 50% of the ETH supply becomes staked, up to 100% of validator rewards could be burned.

The implications for stakers are considerable. Consensus-layer yields currently stand at approximately 2.6%. Under EIP-8361, those yields could fall to roughly 1.2%, effectively cutting validator earnings in half. Because proof-of-stake networks rely on staked collateral for security, staking yields are a key variable in maintaining adequate validator participation — a dynamic the proposal's 18-month gradual rollout period is structured to address.

The changes would be implemented gradually over an 18-month period following inclusion in a future network upgrade. The target timeline places activation after the Glamsterdam upgrade, anticipated in fall 2026, meaning the full effects of EIP-8361 would likely not be realized until 2028.

Solana's Dual Approach: Accelerated Disinflation and Resource-Based Fees

Solana is pursuing supply adjustments through two parallel proposals. The first, SIMD-0550, directly targets the network's inflation schedule. Solana's current annual disinflation rate is 15%, meaning the rate at which new SOL enters circulation decreases by that amount each year. SIMD-0550 would raise the rate to 30%.

As a consequence, Solana's inflation would reach its terminal floor by 2029 rather than 2032, cutting three years off the original timeline. Galaxy Research estimates this would reduce future SOL emissions by approximately 18.9 million tokens.

The second proposal, SIMD-0553, would restructure Solana's fee model by replacing flat transaction fees with resource-based pricing. Daily SOL burns currently average around 650 tokens. Under SIMD-0553, that figure could rise to between 7,500 and 9,000 SOL per day — a 12x to 14x increase in the rate at which SOL is permanently removed from circulation. The shift toward usage-based fee structures aligns with a broader trend across Layer 1 networks seeking to tie transaction costs more directly to computational demand.

Both proposals have passed a key governance milestone by securing the 15% active stake support necessary to advance into formal discussions and a subsequent voting window. The process marks one of the earliest significant tests of Solana's on-chain governance system, an area where the network has historically relied on off-chain coordination among validators and core developers.