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Ethereum proposes cutting validator rewards as staking grows to half of total ETH supply.

Protocol Fundamentals
04 Aug 2026
Tokenpost
View Source
Neutral
Ethereum proposes cutting validator rewards as staking grows to half of total ETH supply.

Ethereum developers have proposed EIP-8361, a plan to reduce validator rewards gradually as more ETH is staked, eventually stopping new staking rewards when half of the total ETH supply is staked. The proposal introduces a reward burn mechanism that increases the burn rate of validator rewards as staking rises, aiming to prevent excessive incentives for staking beyond 50% of circulating ETH. An 18-month phased implementation is planned, starting with a temporary boost in rewards before tapering off to zero issuance at the 50% staking threshold. The Ethereum community will review this proposal before deciding on its inclusion in a future network upgrade.

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