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Ethereum and Solana mull changes that could cut staking ETF income

Grayscale’s filings project staking rewards being converted to cash for its Ethereum and Solana staking ETFs, but protocol proposals aim to lower modeled staking yields within years.

Reported · Written up by our desk · Market Structure

Grayscale’s July 17 SEC filings say its Ethereum and Solana staking ETFs would convert staking rewards into cash and distribute them to shareholders at least quarterly, with changes expected around Aug. 7, according to CryptoSlate.

The outlet reports that Solana and Ethereum developers are also considering protocol upgrades that could reduce staking income at the source, potentially changing what ETF holders ultimately receive.

On Solana, the SIMD-0550 proposal would increase the network’s annual disinflation rate from 15% to 30%, which the article says is designed to cut modeled staking yield from 5.84% today to 2.25% within three years, assuming 68% of tokens are staked.

For Ethereum, an early August draft proposal would burn an expanding share of validator rewards as more ETH is staked, reaching a burn of 100% once roughly half the supply is staked, with one warning that without reform more than 70 million ETH could be staked by January 2028, pushing over 55% of supply into staking.

Latest closeEthereum $1,878.58 ▼0.1%|Solana $75.19 ▼0.1%

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