TheBlock
The authors of EIP-8363 have withdrawn their staking reward burn proposal from consideration for Ethereum’s Hegota upgrade. The plan would burn a larger share of validator rewards as more ETH is staked, reaching 100% at about 60.25 million ETH, roughly half the supply. Its proposed rollout would take about 18 months.
Co-author Jérôme de Tychey said industry participants and protocol contributors argued that deciding issuance policy was beyond the scope of choosing features for Hegota. The authors still stand by the proposal’s motivation and intend to pursue the question through a separate process, starting with a forum at Devcon in November.
The stakes extend beyond validator rewards. At a staking level of about 34% of ETH supply, the proposal would have cut annual consensus yield from roughly 2.6% to 1.2%. Critics raised concerns about DeFi, solo stakers, security and the composition of the validator set. Withdrawal keeps that change out of Hegota consideration; it does not settle Ethereum’s longer-term issuance policy.
Frequently asked questions
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Why was EIP-8363 withdrawn from Hegota consideration?
Industry participants and protocol contributors argued that deciding Ethereum’s issuance policy was beyond the scope of choosing features for the Hegota upgrade.
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How would EIP-8363 change validator rewards?
It would burn a rising share of validator rewards as more ETH is staked, reaching a 100% burn at about 60.25 million ETH, roughly half the supply.
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What would the proposal have meant for staking yield?
At a staking level of about 34% of ETH supply, the proposal would have reduced annual consensus yield from roughly 2.6% to 1.2%.
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Does the withdrawal end the Ethereum issuance debate?
No. The authors still support the proposal’s motivation and intend to pursue issuance policy through a separate process, starting with a forum at Devcon in November.
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What concerns did critics raise about the reward burn plan?
Critics raised concerns about its effects on DeFi, solo stakers, network security and the composition of the validator set.
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