Ethereum proposal could end staking rewards at 50%

Ethereum researchers have proposed a new issuance model that would gradually burn validator rewards and reduce them to zero once about half of ETH’s supply is staked. Summary EIP-8361 would burn a growing share of validator rewards as Ethereum’s staking ratio increases. Rewards would reach zero near 60.25 million staked ETH, equal to roughly half the current supply. The draft proposes an 18-month transition period to limit abrupt changes in validator yields. EIP-8361 remains under community review and has not been approved for an Ethereum upgrade. EIP-8361 would taper Ethereum staking rewards Ethereum researchers Jérôme de Tychey, Justin Drake, dapplion, pintail, pa7x1, and Ladislaus von Daniels submitted EIP-8361 as a draft Core Ethereum Improvement Proposal. A new $ETH improvement proposal has been published that would lower the staking yield to 0% if >50% of ETH is staked and to 1% yield at current levels of ETH staking.Is this a good idea? pic.twitter.com/aOxwHdUC8n— Satoshi Stacker (@StackerSatoshi) August 4, 2026 Called Tapered Issuance Burn, the mechanism would destroy part of the rewards validators receive for attestations, proposing blocks, and participating in sync com...