Ethereum and Solana are each reviewing measures to reduce token issuance, but an analysis said demand, rather than reduced supply, is the key variable that will determine price moves.

On Aug. 8, local time, blockchain outlet Cryptopolitan reported that Galaxy Research said talks are under way on revamping issuance structures for the two networks, but demand determines where tokens ultimately go.

The discussion focuses on adjusting network-level inflation. On Ethereum, EIP-8361 has been proposed to adjust validator rewards depending on the staking share. The structure would gradually reduce validator rewards as the share of total Ethereum staked nears 50 percent, and burn rewards once it reaches a certain level. Based on the current situation in which about one-third of total supply is staked, the consensus-layer yield is expected to fall to about 1.2 percent from about 2.6 percent.

The proposal was submitted by 6 researchers, including Justin Drake (저스틴 드레이크) of the Ethereum Foundation. The implementation period is set at 18 months to give stakers time to respond to the change. No vote has been held yet. It is being discussed as a review item for Hegotá, an upgrade after 'Glamsterdam' scheduled for this fall. The selection process is set to continue through November, and even if it is ultimately approved, actual implementation is likely to take place in 2027.

Market reaction is not favorable. Aave (에이브) founder Stani Kulechov (스타니 쿨레초프) and Sharplink have publicly opposed it. Joseph Chalom (조지프 샬롬), Sharplink's chief executive officer, argued on X that "if hardware and power costs are reflected, validators could run a deficit." In a validator survey, 99.77 percent opposed it, and at a core developer meeting held on Aug. 6, a presenter even mentioned the possibility of withdrawing the agenda item.

Solana, meanwhile, is pushing two proposals at the same time through on-chain governance. The first agenda item, SIMD-0550, would raise the annual disinflation pace to 30 percent, twice the current level. It aims to bring forward the point at which it reaches the final inflation floor of 1.5 percent to 2029 from 2032, and to cut future planned issuance by about 18.9 million SOL. Assuming a staking participation rate of 68 percent as presented, staking yield would gradually fall from 5.84 percent at introduction to 4.34 percent after 1 year, 3 percent after 2 years and 2.25 percent after 3 years.

The second agenda item, SIMD-0553, would switch the signature fee, currently charged at a fixed rate per transaction, to a structure proportional to the amount of computational resources used. Under the new system, the full amount of the fee would be burned, also aiming to reduce pressure from new supply within the network.

Galaxy Research said that if the plan is implemented, Solana's daily burn could rise to about 7,500 to 9,000 SOL from about 650 SOL. At current prices, that would expand the daily burn from about $47,000 to as much as $650,000. It noted, however, that inflation of about 60,000 SOL a day still offsets that.

Solana's agenda items have drawn less backlash than Ethereum's. Galaxy Research cited the fact that the related ideas have been circulating in the market for more than a year. Both agenda items cleared the 15 percent active stake threshold to begin discussions, and passage requires approval by more than two-thirds of decisive stake. The discussion period ends on Aug. 22.

Against that backdrop, DeFi Development (DFDV), which holds Solana as a major treasury asset, said on Aug. 4 it would support both agenda items and vote in favor. While the supply-adjustment discussion is gathering pace, Galaxy Research stressed that prices are ultimately not determined by issuance changes alone and that direction is set only when demand supports it.

The discussion again showed that what matters more than issuance cuts themselves is how they affect actual supply and demand. For Ethereum, validator profitability and consensus have emerged as key variables. For Solana, key variables are passage through governance and the effectiveness of expanding burns.

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