Ethereum Developers Consider Limiting Staking Rewards

Ethereum developers are exploring a proposal to limit staking on the network, which could reduce the yield stakers generate. This move would also impact the coin's supply growth rate.

The proposed Ethereum Improvement Proposal (EIP)-8363 would change the way staking rewards are calculated. Currently, stakers who validate transactions get paid in new Ether coins, effectively diluting everyone else's value. EIP-8363 suggests charging validators a deduction on every duty they perform and then destroying those coins.

The deduction would climb with the staked total, eventually hitting 100% at around 60.2 million Ether staked. This change would phase in over an 18-month period.