A proposal to burn a growing share of Ethereum staking rewards will not be included in the network’s Hegota upgrade.
Jérôme de Tychey, president of Ethereum France and a co-author of EIP-8363, said Thursday in the proposal’s Ethereum Magicians thread that he was withdrawing it from consideration for the hard fork. He also shared the decision on X.
In his post, de Tychey said that as the upgrade scoping process moved ahead, several industry participants as well as core protocol and client contributors argued that a fork-scoping exercise was not the right place to settle a change in issuance policy.
He wrote, 「We agree and we’d rather acknowledge this now than carry on towards Hegotà in this context. The topic is too important and raised too many concerns that it deserves its own process.」
The withdrawal was also on the agenda for Thursday’s All Core Devs consensus call, where developers were still defining the scope of the fork. Hegota’s meta EIP currently lists EIP-8363 only as proposed for inclusion, the earliest stage.
What EIP-8363 would have changed
The proposal, titled Tapered Issuance Burn, would have burned a portion of each validator’s rewards. The burned share would rise as more ETH was staked, eventually reaching 100% once staked ETH hit 60.25 million ETH, roughly half of total supply.
The EIP has six authors, including de Tychey and Justin Drake, and they had planned an 18-month phase-in.
According to the proposal’s estimate, if it were fully imposed at the roughly 33% staking ratio cited when the draft was written this summer, net yield would fall by more than half, from about 2.6% to 1.2%.
De Tychey also said on X that the proposal had become one of the most commented-on EIPs in the history of the Ethereum-Magicians forum.
Pushback during Hegota scoping
Back in August, DeFi figures including Aave’s Stani Kulechov pushed back on the proposal.
Unchained had previously reported that on Sept. 7, the Ethereum Foundation’s Protocol cluster unanimously declined it for Hegota in a tier list, while saying the grade was not a judgment on the merits of the proposal itself.
Authors now want a dedicated issuance track
De Tychey said the authors still stand by the motivation behind the EIP. He also thanked liquid staking protocol Lido for offering to help guide a dedicated issuance process.
Under his draft schedule, that process would begin with an issuance forum at Devcon in November and run through EthCC in April, with the goal of reaching CFI / SFI for a proposal there.
Kulechov, Aave’s founder and CEO, called the withdrawal a 「Great move」.
Anthony Leutenegger, CEO of Aragon and a Lido delegate, described it as a 「Smart decision」 and added: 「Glad this got shut down and future conversations can happen at a more sensible time, with less risky tradeoffs.」
Oisín Kyne, CEO and co-founder of Obol, thanked de Tychey for engaging in good faith 「with a smile on your face through a long onslaught」.