Grayscale will convert staking rewards from its Ethereum and Solana ETFs into cash distributions starting August 7. Solana developers propose cutting modeled staking yield from 5.84% to 2.25% over three years, limiting the creation of an additional 18.9 million SOL worth approximately $1.47 billion at current prices. Ethereum researchers filed a draft proposal (EIP-8363) that would burn a growing share of validator rewards as the staking rate increases, reaching 100% once roughly half of ETH supply is staked. These changes aim to limit dilution for non-stakers but would reduce income for passive stakers, smaller validators, and ETF holders. Both networks are betting on scarcity premium over yield, a bet whose success depends on how investors react to this income compression.
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