Ethereum Researchers Propose Reward Cuts Amid Soaring Staking Growth
A group of six Ethereum researchers and developers has proposed changing the network's issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises.
The draft, called the Tapered Issuance Burn (EIP-8363), would burn an increasing fraction of validators' consensus rewards as the amount of staked ETH approaches a fixed threshold of 60.25 million ETH (around 50% of the current ETH supply).
At this point, the deduction hits 100%, and the changes would phase in over 18 months.
The proposal has triggered backlash from developers, stakers, and DeFi founders, who warn that the reward cuts could force out solo validators before larger institutions are affected, weaken institutional demand for ETH, and disrupt DeFi markets built around staking yield.