Ethereum, Solana Token Inflation May Cut Supply Growth Below Gold's

Grayscale research suggests that Ethereum (ETH) and Solana (SOL) may become scarcer than gold by 2031 due to tokenomics changes.

If implemented, these changes would reduce annual token inflation significantly. By the end of 2031, ETH and Bitcoin (BTC) would sit at roughly 0.4% annual inflation, while SOL would land at around 1.1%. These figures are below gold's 1.8% annual supply growth and U.S. CPI inflation at 3.3%.

The proposed changes involve reducing the issuance of new tokens as staking rewards. This means fewer tokens enter circulation each year, increasing scarcity. The Solana proposals appear to have broader community agreement and a better chance of passing than Ethereum's changes.

Token holders who stake would receive fewer new tokens since staking rewards come directly from inflation. Holders of unstaked ETH and SOL could benefit from the scarcity value increase. Whether stakers come out ahead depends on whether higher token prices offset the reduction in rewards.