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Ethereum researchers have proposed EIP-8361 for "Tapered Issuance Burn," a proposal which would change staking rewards so that yields progressively decline as more ETH enters staking, eventually reaching zero once roughly half of the supply is staked.
What’s the scoop?
- How it works: EIP-8361 would continue calculating validator rewards under Ethereum’s existing system, but then burn part of those rewards. The percentage burned would increase as more ETH is staked so that, at around 50% of the supply staked, the burn would fully cancel validators’ normal consensus rewards. Validators would then earn from transaction tips and MEV.
- Why proponents want it: Ethereum currently continues issuing staking rewards no matter how much ETH is staked. The proposal’s authors argue this could eventually push too much ETH into staking services, exchanges, ETFs, and liquid staking tokens. Reducing rewards would limit that incentive while also lowering ETH issuance and dilution.
- The transition: If accepted, the final system would substantially reduce today’s staking yields, so the change would be phased in over 18 months rather than introduced all at once.
- The pushback: Critics argue lower rewards could hurt solo stakers first because larger operators have lower costs and additional revenue sources. That could force smaller validators out and concentrate staking among exchanges and major providers. Critics also objected to submitting such a significant monetary-policy proposal shortly before the deadline for consideration in Ethereum’s Hegotá upgrade.
🚨 New EIP: Tapered Issuance Burn
— Jerome de Tychey 🦇🔊 (@jdetychey) August 4, 2026
We just submitted an EIP to ethereum/EIPs: a minimal, market-driven fix to Ethereum's issuance policy removing the incentive for stake growth beyond 50% of ETH supply.
EIP-8361 by @pintail_xyz, @jdetychey, @dapplion, @pa7x1, @ladislaus0x &… pic.twitter.com/g1uzWPycQ4
