Ethereum May End New ETH Issuance at 50% Staked Supply
TLDR
- Ethereum researchers proposed gradually burning newly issued validator rewards.
- The burn rate would reach 100% when 60.25 million ETH is staked.
- That staking level is valued at about $112 billion.
- Validators would continue receiving transaction fees and tips.
- The reward reduction would phase in over about 18 months.
- Around 41 million ETH is currently staked.
Ethereum researchers have proposed a burn system that could reduce new ETH issuance to zero. The plan would fully burn validator rewards once about 60.25 million ETH is staked, worth roughly $112 billion.
The proposal aims to slow staking growth and limit dilution. It arrived before the Aug. 6 deadline for changes proposed for Ethereum’s Hegotá upgrade.
Ethereum Proposal Targets Zero Issuance
Under the plan, the network would burn a rising share of validator rewards. The burn rate would increase as more ETH enters staking and reach 100% when about half of Ethereum’s supply is locked.
The deduction would occur at the end of each epoch, which lasts about 6.4 minutes. Validators would keep transaction fees and tips, while only newly issued ETH would face the burn.
… Continue reading the full article at the original source below.
