Ethereum Researchers Propose Zero Net Supply Growth with New Validator Reward Mechanism

Ethereum researchers have introduced two new proposals that could drastically alter the network's monetary policy and aim to zero out net supply growth.

The proposed mechanism, EIP-8361 and EIP-8363, would burn increased validator rewards, reducing net supply growth to zero. This system is set to activate when approximately 50 percent of the total Ethereum supply is staked.

Social data shared by Santiment shows that the community is concerned about the potential impact of this change on yields, particularly for solo stakers and decentralized finance platforms.