Ethereum, Solana Tokenomics Proposals Could Reduce Inflation and Make Assets Scarce
Grayscale, a major digital asset management company, has reported that Ethereum and Solana are considering changes to their tokenomics. The proposals, known as EIP-8361 for Ethereum and SIMDs 550/553 for Solana, aim to reduce annual inflation and make ETH and SOL relatively scarcer.
According to Grayscale's projections, assuming the proposals take effect immediately and other conditions remain unchanged, annual supply inflation by 2031 could fall to approximately 0.4% for ETH and 1.1% for SOL.
The Ethereum proposal, EIP-8361: Tapered Issuance Burn, aims to slow the growth of Ethereum staking once it reaches 50 percent of the total ETH supply by gradually reducing staking rewards. The Solana proposals focus on restructuring transaction fees and doubling the rate at which Solana's inflation schedule declines.
The proposed changes are under debate by the respective communities, with Grayscale stating that the Solana proposals appear to have broader agreement. If implemented, staking rewards paid through new token inflation would be lower.