New Ethereum proposal would cut issuance to zero if staked ETH reaches $112 billion
The draft would phase in over 18 months and cut new issuance to zero once about 60.25 million ETH is staked.
- Ethereum researchers, including Justin Drake of the Ethereum Foundation, proposed gradually burning validator rewards to curb staking growth, arriving days before the August 6 deadline for inclusion in the Hegot upgrade.
- The burn would hit 100% once 50% of supply is staked, driving net issuance to zero, as authors argue excessive stake makes Ethereum less secure by concentrating holdings with large providers.
- About 41 million ETH, or 34% of supply, is currently staked; even if every ETH were staked, the yield would sit near 1.5%, providing persistent incentive to add more stake.
- Mike Silagadze, founder of liquid staking protocol ether.fi, criticized the proposal as a "major network economics change," arguing it would "self evidently push out solo stakers" and negatively impact DeFi.
- Aave Labs chief executive Stani Kulechov warned the change would make ETH borrowing strategies unviable, while the proposal's inclusion in the Hegot upgrade planned for late 2026 remains uncertain.
35 Articles
35 Articles
The updated value of the second most important cryptocurrency by capitalization.Origin and history of Ethereum.
Ethereum Researchers Want To Rein In Staking; Critics Warn It Could Backfire
Ethereum Researchers Want To Rein In Staking; Critics Warn It Could Backfire Authored by Felix Ng via CoinTelegraph.com, A group of six Ethereum researchers and developers, including Ethereum Foundation’s Justin Drake, has proposed changing the network’s issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises. The draft, called the Tapered Issuance Burn and currently being assigned the provisional number EIP-…
Six Ethereum Researchers Propose Burning Validator Rewards to Zero Issuance at a 50% Staking Ratio
Six Ethereum researchers and developers published a draft improvement proposal on Tuesday that would burn a rising share of validator rewards, removing the protocol’s issuance incentive to stake more than half of all ETH. The authors are lead writer pintail, Ethereum France President Jérôme de Tychey, Ethereum core developer dapplion, pa7x1, researchers Ladislaus von Daniels and Justin Drake. At each epoch boundary, every validator is charged a …
Cointelegraph
coincodex.comEthereum Proposal to Slash Staking Rewards Sparks Backlash
An Ethereum proposal to sharply reduce validator rewards as staking grows has sparked debate, with critics warning it could hurt the parts of Ethereum that have helped it grow.
Ethereum proposal could end staking rewards at 50%
Ethereum researchers have proposed a new issuance model that would gradually burn validator rewards and reduce them to zero once about half of ETH’s supply is staked. EIP-8361 would taper Ethereum staking rewards Ethereum researchers Jérôme de Tychey, Justin Drake,…
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