A draft EIP-8361 suggests burning validator rewards to curb staking once 60.25 million ETH is locked, aiming to bolster scarcity.
A new Ethereum Improvement Proposal (EIP-8361) proposes burning validator rewards as staked ETH approaches 60.25 million, or roughly half the supply. The plan would eliminate net issuance if staked ETH reaches $112 billion, addressing concerns over centralization and security risks from excessive staking yields.
The proposal, drafted by six Ethereum researchers, would phase in over two years, targeting only newly issued ETH while preserving transaction fees. Current staking dynamics reward validators with newly created ETH, but rising participation has raised fears of concentration among large exchanges and providers.
Developer and DeFi community reactions are divided, with some questioning the plan’s feasibility for the upcoming Hegotá upgrade. The proposal aims to enhance ETH’s long-term scarcity by reducing dilution for existing holders.