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EIP-8363's Burn Rate Falls Short of Reducing Ethereum Issuance

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Ethereum's EIP-8363 proposal aims to reduce issuance by burning a portion of validator rewards, but its effectiveness is questioned due to the already low burn rate and rising issuance.

Burning fees have been decreasing over time, with only 2.4% of new supply being offset in 2026, compared to a total issuance of about 1.08 million ETH per year.

The proposal would cut issuance by half at the current staking level, but it is still far from complete zeroing and requires an unrealistic 43% increase in staked ETH to achieve.

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