Galaxy says Ethereum, Solana may rethink token inflation models

Galaxy Research Vice President Lucas Tcheyan said on Aug. 7 that Ethereum and Solana are confronting a similar policy question: how much token issuance is needed to pay for network security, and when does that security budget become more costly than useful? The debate is moving through proposal processes on both networks, but neither blockchain has approved an inflation change. Summary Ethereum’s tapered issuance proposal is now EIP-8363, after editors reassigned its initially reported proposal number. EIP-8363 would burn rising validator rewards and remove issuance incentives near a 50% staking ratio. Solana’s SIMD-0550 would double annual disinflation to 30%, cutting projected emissions by 18.9 million SOL. Solana governance requires two-thirds support from decisive stake after proposals complete an eleven-epoch voting process. Galaxy says both networks are reassessing security budgets, with no final inflation changes approved yet. One important update concerns Ethereum’s proposal number. Galaxy initially referred to the Tapered Issuance Burn proposal as EIP-8361. Ethereum’s EIP editors later assigned it EIP-8363 because EIP-8361 had already been allocated elsewhere. The EIP-8363...