Ethereum Staking Rewards to Face Gradual Reduction Under New Proposal
A new Ethereum Improvement Proposal (EIP-8361) is aiming to change the way staking rewards work on the network. The proposal, known as Tapered Issuance Burn, suggests gradually reducing new ETH issuance as more tokens are staked.
Currently, validators earn around 2.6% annual consensus rewards for their work. However, the authors of EIP-8361 believe this model encourages excessive staking growth and prevents the network from becoming deflationary.
The proposal suggests a transition period of 18 months, followed by additional network upgrade time, giving participants nearly two years to adjust to the new system.