Staking Growth Drives Ethereum Issuance as Reward Burns Gain Attention

Ethereum's supply dynamics are shifting, with staking growth contributing to net positive issuance. Over the past 90 days, validators earned around 254,000 ETH in issuance, while base-fee burns removed about 5,200 ETH, resulting in a net supply growth of +0.21%. The daily burn averaged ~58 ETH/day but dropped to ~27 ETH/day in the last month.

The staking curve is driving this trend, with around 38.5 million ETH staked and rising toward 40 million by mid-year. This growth dilutes individual yields but lifts aggregate issuance. A weak base-fee burn combined with steady staking contributes to net positive issuance.

A proposal to introduce 'reward burns' aims to counterbalance this trend. This concept involves burning a portion of validator rewards, including priority fees and MEV, to create a second fee sink that smooths supply when base-fee burns are weak.