Ethereum Stakers Face Zero Issuance Proposal Amid Rapid Growth
Ethereum researchers have proposed a plan to reduce new ETH issuance to zero by gradually burning validator rewards. The burn rate would increase as more ETH is staked, reaching 100% when about half of Ethereum's supply is locked.
The proposal aims to slow staking growth and limit dilution. Currently, around 41 million ETH is staked, worth nearly $58 billion at current prices. The researchers estimate that the target staking level of 60.25 million ETH would be valued at about $112 billion.
Validators would continue receiving transaction fees and tips, while only newly issued ETH would face the burn. The deduction would occur at the end of each epoch, which lasts about 6.4 minutes. The proposal includes an 18-month phase-in period after activation, with six months of preparation before the upgrade ships.