Ethereum researchers propose destroying validator rewards as staking scales
A group of Ethereum researchers, including Justin Drake, has proposed a mechanism called “Tapered Issuance Burn” that gradually burns a larger portion of validator rewards as more ETH is staked.
According to the draft proposal, once about 50% of Ethereum’s supply (around 60.25 million ETH) is staked, issuance in the consensus layer would drop to zero. This transition would be completed in stages over 18 months.
Supporters believe this could limit excessive concentration of staking, reduce ETH inflation, and prevent large custodians and staking providers from gaining too much influence.
Critics warn that it could reduce individual validator earnings, weaken demand for liquid staking tokens such as stETH, harm DeFi lending and yield strategies, and potentially damage Ethereum’s long-term economic security.
The proposal was submitted shortly before the deadline for Ethereum’s upcoming Hegotá upgrade.$ETH 🔵 focusing on this and that👇👇🔹🔵
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A group of Ethereum researchers, including Justin Drake, has proposed a mechanism called “Tapered Issuance Burn” that gradually burns a larger portion of validator rewards as more ETH is staked.
According to the draft proposal, once about 50% of Ethereum’s supply (around 60.25 million ETH) is staked, issuance in the consensus layer would drop to zero. This transition would be completed in stages over 18 months.
Supporters believe this could limit excessive concentration of staking, reduce ETH inflation, and prevent large custodians and staking providers from gaining too much influence.
Critics warn that it could reduce individual validator earnings, weaken demand for liquid staking tokens such as stETH, harm DeFi lending and yield strategies, and potentially damage Ethereum’s long-term economic security.
The proposal was submitted shortly before the deadline for Ethereum’s upcoming Hegotá upgrade.$ETH 🔵 focusing on this and that👇👇🔹🔵
🔵$ZEC focusing on this and that👇👇🔹🔵
🔵$BANK focusing on this and that👇👇🔹🔵