Ethereum Researchers Propose Tapered Reward Burn at 60.25M ETH Staked

ETH-3.80%
Ethereum researchers, including Ethereum Foundation researcher Justin Drake, proposed a tapered issuance burn mechanism in mid-July that would gradually destroy validator rewards as the network's staking ratio increases. According to the draft proposal, once approximately 60.25 million ETH, or around 50% of Ethereum's total supply, is staked, the burn would reach 100%, reducing net consensus-layer issuance to zero. The proposal aims to discourage excessive staking, reduce concentration among major staking providers, and lessen dilution for non-staking ETH holders. Implementation would occur gradually over 18 months. Community reaction has been divided, with critics warning of potential DeFi impacts and reduced staking attractiveness, while supporters argue lower ETH issuance could strengthen the asset through reduced inflation.
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