Ethereum, Solana Reassess Inflation as ETH, SOL Supply Outlook Comes Into Focus

Ethereum and Solana stakeholders are reassessing how much token issuance is needed to maintain on-chain security. According to Galaxy Research Vice President Lucas Tcheyan, the debate could ultimately determine whether either network adjusts its inflation schedule.

The discussion remains at the reassessment stage, with no decision reached. At its core is the question of how much token security budget each network requires and whether adjusting its inflation schedule is worthwhile. 

Changes to inflation would shape the future supply of ETH and SOL. A lower rate could strengthen the balance between available supply and demand by limiting new issuance, while an unchanged or higher rate would keep adding tokens to supply.

Tcheyan said stakeholders are increasingly linking the cost of securing their networks with token value. That relationship could prompt markets to reprice expectations for future ETH and SOL supply as the debate over security budgets develops.

Source: Galaxy Research