Ethereum Proposals Aim to Restructure Staking Rewards
Recent proposals for Ethereum, including EIP-8361 and EIP-8363, suggest significant changes to staking rewards. If more than half of the ETH supply is staked, rewards could be reduced to zero over 18 months. Additionally, if staked ETH reaches $112 billion, a portion of validator rewards may be burned. Critics warn these changes could have unintended consequences.
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Articles and publisher reports that informed this story.
Ethereum Proposal Would Burn Staking Rewards to Zero if Half of ETH Is Staked
The incentive to stake beyond half the supply would disappear at activation, with the yield cut phasing in over 18 months.
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.
Ethereum researchers want to rein in staking; critics say it could backfire
EIP-8363 is a newly published draft proposal that would cut net consensus-layer rewards as the Ethereum staking ratio heads toward 50%.

