Galaxy Research Vice President Lucas Tcheyan has told clients that while developers on both Ethereum and Solana are proposing plans to slow new token issuance, it is ultimately demand — not supply changes — that will dictate future price trajectories. The analysis comes as both networks weigh significant monetary policy adjustments.
Ethereum's proposal, EIP-8361, introduces a "tapered issuance burn" that would gradually reduce validator rewards to zero once 50% of all Ether is staked. At the current staking rate of roughly one-third of supply, consensus-layer yield would drop from about 2.6% to 1.2%. The Ethereum Foundation's Justin Drake is among the authors. The plan, slated for the Hegotá upgrade after Glamsterdam, faces strong headwinds: a validator survey found 99.77% opposed, and the presenting author on the August 6 All Core Devs call suggested pulling it from consideration entirely. If adopted, it would phase in over 18 months, with approval unlikely before 2027.
Solana has two proposals advancing through its on-chain governance. SIMD-0550 would double the annual disinflation rate to 30%, pulling the 1.5% terminal inflation floor forward to 2029 from 2032 and removing about 18.9 million SOL from future emissions. Under a 68% staking scenario, staking yield would start at 5.84% and fall to 2.25% by year three. SIMD-0553 would replace the flat per-signature fee with a resource-based charge burned outright, potentially increasing daily SOL burns from roughly $47,000 to up to $650,000. Still, that burn is offset by approximately 60,000 SOL in daily inflation. DeFi Development Corp., which holds SOL as its primary reserve asset, supports both proposals. The discussion period ends August 22, 2026.
Tcheyan stressed that while reduced issuance could affect supply-demand dynamics, it is demand that remains the primary price driver. The warning tempers expectations that lower inflation alone will boost token values, suggesting market participants should monitor adoption and usage metrics just as closely as monetary policy changes.
