New Ethereum proposal would cut issuance to zero if staked ETH reaches $112 billion
The EIP-8361 draft proposal calls for burning a rising share of validator rewards as the staking ratio climbs.
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Summary
- A new proposal from six prominent Ethereum researchers would gradually burn an increasing share of validator rewards as more ETH is staked, reaching a full burn at about 60.25 million ETH, or roughly half the supply.
- The change aims to cap staking by making additional stake less profitable, amid concerns that ever-rising yields push ETH into large exchanges and staking providers, undermining decentralization and security.
- The plan, which would phase in over about two years and only burn newly issued ETH while leaving transaction fees and tips intact, has split developers and DeFi participants and may miss inclusion in the upcoming Hegotá upgrade.
