Grayscale: If the plans to reduce the token inflation rates of Ethereum (ETH) and Solana (SOL) are implemented, it could provide price support.

Grayscale Research Head Zach Pandl published a post stating that the Ethereum and Solana communities are discussing adjustments to their token economic models, with related code changes potentially lowering the annual inflation rates of ETH and SOL, thereby reducing future token supplies. Ceteris paribus, slower supply growth could provide support for token prices. Grayscale estimates that if the relevant adjustments are implemented, by the end of 2031, ETH’s annual supply inflation rate will drop to around 0.4% (close to that of BTC), while SOL’s will stand at approximately 1.1%. By comparison, gold’s annual supply growth rate is roughly 1.8%, and the U.S. CPI inflation rate is about 3.3%. Currently, the relevant proposals are still under discussion within their respective communities. Pandl noted that the Solana-related proposal appears to have broader consensus, making it more likely to be implemented. If the proposals pass, since staking rewards are primarily derived from new token issuance, the number of tokens earned by ETH and SOL stakers will decrease. Pandl pointed out that reduced supply could boost scarcity and exert upward pressure on prices, benefiting holders of unstaked ETH and SOL; whether stakers will benefit depends on the net impact between the reduction in staking rewards and the potential rise in token prices.