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Ethereum (ETH) Research Teams Suggest Burning Validator Rewards to Limit Staking to 50% of Supply
['Omar Faridi']
Crowdfund Insider
A group of Ethereum researchers has put forward a draft proposal designed to reshape the network’s staking economics by progressively destroying a share of the rewards paid to validators.
Under the current system, validators continue to receive a positive yield from new ether issuance no matter how large the total staked amount becomes.
Even if every available ETH were committed to staking, a residual return of around 1.5 percent would still exist.
At that point—roughly 50 percent of the present circulating supply—net consensus-layer issuance for properly performing validators falls to zero.
Whether the proposal ultimately advances will depend on further technical scrutiny and broader stakeholder discussion across the Ethereum ecosystem.