Ethereum and Solana Plan to Reduce Staking Rewards Amid Growing Demand for Scarcity

Grayscale's Ethereum and Solana staking ETFs plan to convert staking rewards to cash and distribute them quarterly, starting around August 7.

This move reflects a shift in how Wall Street views staking, as traditional dividend payouts become more popular.

In response, both Ethereum and Solana are considering changes to their protocols that would reduce the income generated by staking rewards.

Solana developers aim to accelerate disinflation, cutting the modeled staking yield from 5.84% to 2.25% within three years.

Ethereum researchers have proposed a draft that would burn an increasing share of validator rewards as more ETH is staked, with the goal of slowing or removing net consensus issuance as staking grows.