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Ethereum proposes burning more staking rewards as ETH staked nears half supply to limit concentration risks

Protocol Fundamentals
13 Aug 2026
CrowdFundInsider
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Neutral
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Ethereum researchers proposed EIP-8361, a plan to gradually burn a growing portion of staking rewards as more ETH is locked, aiming to reduce excessive concentration of staked ETH. The burn rate increases until about half the circulating ETH is staked, at which point net rewards for validators drop to zero, balancing incentives and scarcity. The change would phase in over 18 months with a temporary boost in rewards to ease transition. The proposal is still a draft, sparking debate over its impact on solo stakers and DeFi, with no set upgrade date yet.

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