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Ethereum and Solana consider adjusting token supply rules

2026-08-10 00:35:06
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Ethereum and Solana consider adjusting token supply rules

Ethereum's EIP-8361 will gradually reduce the number of verifiers issued as the amount of pledges increases, possibly reducing the consensus layer yield from 2.6% to 1.2%. Solana's SGP-0002 may double the annual inflation decline rate to 30%, and is expected to reduce future issuance by approximately 18.9 million SOL units. Both networks are evaluating reducing issuance to balance token supply, verifier incentives, and the long-term costs of network security.

According to Lucas Tcheyan, vice president of Galaxy Research, developers at Ethereum and Solana are reviewing adjustments to their respective token inflation plans. The proposals explore the amount of token issuance needed by the network to ensure security and whether current supply policies should change. At present, neither network has made a final decision, and relevant discussions are still in progress.

Ethereum proposal focuses on verifier circulation

Six researchers, including Ethereum Foundation researcher Justin Drake, submitted EIP-8361, which is known as "Decreasing Issue Destruction." The core idea is that as the proportion of pledged ETH increases, more verifier rewards will be destroyed. Once half of Ethereum's total supply is pledged, the proposal will destroy all verifier circulation. The current pledge rate is about one-third, and the consensus level yield will drop from about 2.6% to 1.2%.

However, the MEV (maximum extractable value) and priority fees in the proposal remain unchanged. If approved, the reduction process will be phased in over 18 months. EIP-8361 is still in draft form and has not yet been voted on. Developers are considering including it in the Heogotá upgrade (an upgrade that follows Glamstam).

Solana advances two inflation proposals

Solana has two proposals being advanced through its new on-chain governance system. Both proposals have received the necessary support of 15% of active pledge interests. SGP-0002 includes SIMD-0550, a proposal that doubles Solana's annual inflation decline to 30%. This change will advance the terminal inflation floor of 1.5% to 2029. Galaxy Research estimates that the proposal could remove approximately 18.9 million SOLs from future circulation. Discussions will last for 16 days before the governance process moves to the next stage.

SGP-0003 includes SIMD-0553, which will replace Solana's current fixed per-signature fee and be dynamically adjusted based on transaction calculation needs.

Security Cost-Driven Supply Review

Tcheyan said Ethereum and Solana face the same security budget issues. Stakeholders are evaluating the minimum token issuance needed for cybersecurity. Galaxy Research pointed out that the inflation rate determines the future supply of tokens. Reducing issuance may change supply dynamics, while maintaining or increasing issuance will continue to increase the total number of tokens.

The study also noted that the market is increasingly concerned about security costs and token value. This discussion may affect market expectations for ETH and SOL supply. For Solana, both proposals require a two-thirds decisive vote to pass. The process includes discussions, equity snapshots, and voting over a fixed governance cycle.

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