Grayscale: ETH and SOL inflation reduction plans may support prices

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Grayscale noted that Ethereum and Solana are considering adjustments to inflation data to slow token supply growth. If approved, ETH and SOL could see lower annual inflation rates by 2031. Grayscale estimates ETH’s inflation may drop to 0.4%, approaching Bitcoin’s level, while SOL could reach 1.1%. For comparison, gold’s supply growth is 1.8%, and U.S. CPI stands at 3.3%. Both proposals are still under community discussion, with Solana demonstrating stronger consensus. Stakers may receive reduced rewards, but potential price appreciation could offset this impact.

ChainThink reports that on August 14, Grayscale Research Head Zach Pandl stated that the Ethereum and Solana communities are discussing adjustments to their token economic models; if implemented, these proposals could reduce the annual supply inflation rates of ETH and SOL and provide price support, all else being equal.

Gray's estimate suggests that by the end of 2031, ETH's annual supply inflation rate could fall to approximately 0.4%, nearing BTC's level; SOL could decline to around 1.1%.

In year-over-year comparison data, the annual supply growth rate of gold is approximately 1.8%, while the U.S. CPI inflation rate is approximately 3.3%. The related proposal is still in the community discussion phase, and the Solana proposal appears to have broader consensus.

If the proposal passes, the token rewards for ETH and SOL stakers will decrease, and their final returns will depend on the net impact of reduced staking rewards versus any potential increase in token price.

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