A New Ethereum Proposal Could Halve Staking Rewards: Who Feels It First?

Ethereum Foundation researcher Justin Drake and five co-authors want to shrink the reward for staking ETH. Their draft plan would switch that reward off once half of all ETH is locked up.

Stakers would earn less. Everyone else would hold a slightly bigger slice of ETH. BeInCrypto maths puts the new reward near 1.1% a year, down from 2.6% now.

Why the Justin Drake Ethereum Proposal Targets Issuance

Ethereum pays people to help run it. Lock up ETH, help check transactions, earn new ETH.

The catch is that the payment never really stops. Even if every ETH were staked, it would still pay roughly 1.51% a year. BeInCrypto checked that against the code.

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So the staked pile keeps growing. It now sits at 41.1 million ETH, or 33.7% of all ETH in existence.

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