Ethereum Devs Propose Hard Cap on Total Supply

A proposal has been submitted to introduce a hard cap on Ethereum's staking contract, which would limit the total supply of ETH in circulation.

The proposal suggests that once around 60.25 million ETH is staked - roughly half of all existing supply - validator rewards will be burned at a rate that eventually tops out at 100%, leaving net issuance at zero.

This means that even as more ETH is staked, the total amount in circulation will remain capped, preventing additional tokens from being created.

The authors argue that this would prevent the incentive to stake more from disappearing, citing a scenario where every single ETH was staked and yield would still hover around 1.5%.