Ethereum and Solana are both rethinking how much new supply they create, and the numbers are striking

Two of the largest proof-of-stake networks are simultaneously reconsidering how many tokens they print, and the proposed changes aren’t cosmetic. Galaxy Research published an analysis on August 7 outlining how Ethereum’s EIP-8361 and Solana’s SIMD-0550 and SIMD-0553 could meaningfully alter the economic architecture of both chains.

Ethereum’s plan: burn validator rewards based on how much ETH is staked

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 practical 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 changes would phase in over an 18-month period following inclusion in a future network upgrade. The target timeline places it after the Glamsterdam upgrade, which is expected in fall 2026, meaning the full effects of EIP-8361 likely wouldn’t materialize until 2028.

Solana’s double play: faster disinflation and resource-based burns

Solana is attacking the supply question from two angles simultaneously. The first proposal, SIMD-0550, targets the network’s inflation schedule directly. Currently, Solana’s annual disinflation rate sits at 15%, meaning the rate at which new SOL enters circulation decreases by 15% each year. SIMD-0550 would double that to 30%.

The practical consequence: 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 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.

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