Ethereum and Solana Propose Major Shifts to Token Issuance Models

Two of the largest smart-contract networks are simultaneously re-examining how much native issuance their consensus layers actually need, and, as reported by KuCoin citing Galaxy Research, both Ethereum and Solana now have live proposals that would reshape future supply expectations rather than current issuance rules.

Ethereum: EIP-8363 and the tapered yield curve

If we look at the Ethereum side first, let us examine EIP-8363, the proposal formerly known as Tapered Issuance Burn. Its central architectural idea is straightforward: as the staking ratio rises, validator rewards gradually diminish, and once the staking rate approaches 50%, the additional issuance incentive is reduced further, with the incremental rewards directed to burn rather than to validators. Consequently, Galaxy's modeling suggests that, with roughly one-third of ETH currently staked, full adoption could push the consensus-layer yield from approximately 2.6% down to 1.2%. It is essential to note, furthermore, that this figure excludes MEV and priority fees and does not in itself signal a revision of Ethereum's monetary policy. The Core Developers Consensus Agenda for August 6 listed EIP-8363 as a candidate for discussion under the forthcoming Hegoeta upgrade, yet no inclusion decision, network vote, or activation timeline has been recorded at this stage.

Solana: SIMD-0550, SIMD-0553, and the SGP process

Turning to Solana, let us walk through what is actually on the table. SIMD-0550 proposes lifting the annual deflation rate from 15% to 30% while preserving a long-term inflation floor of 1.5%; the proposal's author anticipates this would accelerate the arrival of terminal inflation from roughly 5.7 years to 2.8 years and reduce SOL issuance by approximately 18.9 million tokens over a six-year horizon — a projection, not a confirmed supply change. The document entered the SIMD repository on July 23 and currently sits in Review status. Alongside it, SGP-0003 supports SIMD-0553, introducing inclusion fees and resource-based fees, with the resource component fully burned; under recent network conditions, Galaxy estimates daily SOL burns could climb from around 650 to a 7,500–9,000 SOL range.

What to watch next

In practical terms, the meaningful signal for our readers is procedural. Both SGP-0002 and SGP-0003 have cleared the 15% active-stake threshold required to enter Solana's on-chain governance flow, which means the sequence ahead is fixed: 7 epochs of discussion, 1 epoch for stake snapshot, and 3 epochs of voting, with a proposal passing only if affirmative votes reach 66.67% of valid stake — abstentions do not count, and there is no separate quorum requirement. Even a successful SGP, however, provides directional authorization rather than activation; the associated SIMD must still be developed further and have its feature flag deployed before implementation. On Ethereum, the next checkpoint is whether EIP-8363 is bundled into the Hegoeta upgrade scope, since absence from that specification would effectively shelve the change for the cycle.