Ethereum and Solana developers are reviewing changes to their respective token inflation schedules, according to Lucas Tcheyan, Vice President at Galaxy Research. Both networks are evaluating how much token issuance is necessary to maintain security and whether current supply policies should be adjusted. Neither network has finalized a decision, and discussions remain ongoing.

The core question, Tcheyan noted, is how much issuance each network truly needs for security. Stakeholders on both sides are weighing token supply, validator incentives, and the long-term cost of network security. For proof-of-stake networks, issuance funds the validators who propose and attest blocks, making token economics inseparable from network security.

Ethereum Proposal Targets Validator Issuance

Six researchers, including Ethereum Foundation researcher Justin Drake, submitted EIP-8361, known as Tapered Issuance Burn. The draft proposal would burn an increasing share of validator rewards as the proportion of staked ETH rises. Under the proposal, all validator issuance would be burned once half of Ethereum's total supply becomes staked.

With approximately one-third of ETH currently staked, the consensus-layer yield would decline from roughly 2.6% to 1.2% if the proposal were implemented today. MEV and priority fees, however, would remain unaffected. If approved, the reduction would phase in over an 18-month period.

The proposal reflects growing concern that Ethereum's staking ratio could rise to levels where issuance overshoots what is needed for security. Since The Merge in 2022, Ethereum has already reduced its net issuance substantially, with EIP-1559's base fee burn further tightening supply. EIP-8361 would extend that trajectory by directly linking issuance burn to staking participation.

EIP-8361 remains a draft and has not been put to a vote. Developers are evaluating it for inclusion in Hegotá, the network upgrade scheduled after Glamsterdam.

Solana Advances Two Governance Proposals

Solana has two proposals progressing through its new on-chain governance system. Both have already secured the required 15% support threshold from active stake. These are among the first substantive policy measures to use Solana's stake-weighted governance framework, which allows validators and delegators to vote directly on protocol parameters.

SGP-0002, which carries SIMD-0550, would double Solana's annual disinflation rate to 30%. This change would move the 1.5% terminal inflation floor forward to 2029. According to Galaxy Research, the proposal could remove an estimated 18.9 million SOL from future emissions. Discussion on the proposal will continue for 16 days before the governance process advances further.

SGP-0003, carrying SIMD-0553, would replace Solana's current flat per-signature fee with a fee that scales according to transaction computing requirements. The change would align Solana's fee model more closely with actual resource consumption, an approach Ethereum already takes with gas-based fees.

Security Costs Drive Supply Review

Tcheyan emphasized that Ethereum and Solana face essentially the same fundamental question regarding their security budgets. Galaxy Research noted that inflation rates directly determine future token supply — lower issuance could alter supply dynamics, while unchanged or higher issuance would continue expanding the circulating supply.

The research firm also highlighted growing attention on security costs and their relationship to token value, a discussion that could shape market expectations for ETH and SOL supply. Both networks rank among the largest proof-of-stake blockchains, meaning their monetary policy decisions are closely watched as reference points for the broader ecosystem.

For Solana, both proposals require a two-thirds majority of decisive stake to pass. The governance process includes a discussion phase, a stake snapshot, and voting across fixed governance periods.