Ethereum's Staking Reward Burn Proposal Withdrawn from Hegotá Upgrade

Ethereum's Hegotá upgrade will not include EIP-8363, a proposal to burn part of validators' staking rewards. The authors withdrew it on October 1 after industry players and core protocol contributors argued that fork scoping was the wrong venue for an issuance policy change.

The proposal would have burned a share of each validator's rewards at every epoch, increasing as more ETH is staked. It reached 100% once about 60.25 million ETH is staked, roughly half the supply. Past that point, staked ETH earns no issuance rewards.

Lido's representative asked the authors to pull it from Hegotá in August, citing no time to prepare counter-proposals and issuance changes in later forks. The proposal was formally put forward for Hegotá, but the authors plan a separate issuance process now.