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Ethereum Validators Face Reward Cuts Under Proposed EIP-8361

Guavy AI Editorial Team
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Ethereum's proposed EIP-8361 (Tapered Issuance Burn) aims to alter validator rewards as more tokens are staked, gradually reducing new ETH issuance once half of the total supply is locked up.

The proposal has drawn both supporters and critics, with some arguing it could strengthen Ethereum's long-term tokenomics by introducing scarcity.

Critics, however, warn that this change may reduce institutional demand and weaken DeFi adoption.

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