EIP-8363

Ethereum

2026-10-02 09:39:48

Ethereum staking reward burn proposal pulled from Hegota, authors push for separate process

A proposal to burn an increasing share of Ethereum staking rewards, EIP-8363, has been withdrawn from consideration for the network’s Hegota upgrade. Jérôme de Tychey, president of Ethereum France and a co-author of the proposal, said the issue had drawn enough concern that it should not be decided during a fork-scoping exercise. The proposal, titled Tapered Issuance Burn, would have burned part of validator rewards, with the burn rate rising as more ETH was staked and reaching 100% at 60.25 million ETH, or roughly half of supply. Its authors had planned an 18-month rollout and estimated that net yield could fall from about 2.6% to 1.2% under the staking ratio cited in the draft. The debate had already triggered pushback from figures including Aave founder and CEO Stani Kulechov, while the Ethereum Foundation’s Protocol cluster had previously declined the proposal for Hegota. De Tychey said the authors still support the proposal’s motivation and will seek a dedicated issuance process, with a draft timeline running from an issuance forum at Devcon in November to EthCC in April.

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Policy and Re

2026-10-01 10:44:40

EIP-8363 co-author withdraws proposal from Hegotá upgrade consideration

Jerome de Tychey said on X that EIP-8363 will be withdrawn from consideration for the Hegotá upgrade. According to his statement, industry participants, along with core protocol and client contributors, believe discussions over hard fork scope are not the right venue for deciding changes to issuance policy. The proposal’s authors now plan to continue talks on ETH issuance policy through a separate process in an effort to build broader consensus. The move shifts the discussion away from the upgrade track and into an independent channel focused specifically on issuance policy.

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ChainFeeds

2026-08-25 02:10:38

ChainFeeds research roundup covers Robinhood, a Zcash ETF filing, AI agent payments and Ethereum’s EIP-8363

ChainFeeds’ Aug. 25 research digest pulled together several market-focused reads spanning tokenized equities, privacy-coin ETFs, machine payments, U.S. debt risk and Ethereum issuance. One featured piece recapped comments from Robinhood CEO Vlad Tenev, who framed memecoins as a potential onchain gateway connecting stock tokens, community identity and broader financial infrastructure on Robinhood Chain. Another examined Grayscale’s latest amended filing tied to a Zcash trust-to-ETF conversion, outlining updated fee terms, custody roles, creation and redemption mechanics, and why Zcash’s optional privacy model may make it more compatible with traditional compliance systems than other privacy coins. The roundup also highlighted Tiger Research’s view that AI agent payments are shifting from a standards race to a real-world distribution battle, with crypto rails such as x402 and stablecoins competing alongside payment incumbents. Ray Dalio’s comments on U.S. debt were included as well, with attention on deficits, refinancing needs, interest costs and portfolio positioning that favors less exposure to debt assets, more gold and a small Bitcoin allocation. Finally, IOSG Ventures offered a quantitative review of Ethereum proposal EIP-8363, arguing the proposal is aimed at network security and stake-rate constraints rather than a simple attempt to drive ETH issuance to zero.

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Ethereum

2026-08-24 14:33:55

EIP-8363 model says Ethereum would cut staking rewards, not erase issuance

A quantitative review by IOSG researcher Mario Chow argues that EIP-8363 would not drive Ethereum issuance to zero at current staking levels, but would instead cut it roughly in half while reducing validator yields and shifting value away from staking intermediaries. The proposal would burn a growing share of validator rewards as the staking ratio rises, reaching a 100% burn at 50% of ETH supply staked. Based on the model in the report, with about 42.2 million ETH currently staked, issuance would fall 58.6% and staking APR would drop 56.4%. The report says that translates into 633,000 ETH less annual dilution, worth about $1.55 billion per year, or 0.53% of ETH market capitalization. The paper also argues that Ethereum’s fee-burn mechanism has lost most of its force. It says EIP-1559 destroyed 1.48 million ETH in 2022, but only 25,660 ETH over the past 12 months, offsetting just 2.4% of annual issuance. In the author’s reading, that leaves issuance policy as Ethereum’s last effective lever over supply. On market impact, the study says it found no detectable relationship between staking yield changes and ETH price performance over a 43-month window from January 2023 to July 2026. It does, however, say supply growth has a somewhat stronger, though still statistically insignificant, connection. The report’s final view is mildly bullish on ETH itself, negative on staking middlemen such as LST and LRT infrastructure, and skeptical that the proposal can pass governance because losses are concentrated while benefits are diffuse.

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Ethereum

2026-08-18 23:17:54

EIP-8363 co-author outlines proposal to adjust Ethereum staking reward curve

According to content shared by crypto podcast host Laura Shin, EIP-8363 co-author Jerome de Tychey explained what the proposal is intended to address. He said Ethereum’s current staking reward curve adjusts rewards based on the amount of ETH staked. The proposal is aimed at a specific technical issue in Ethereum’s existing staking economics model, with the main focus on how validator reward curve adjustments are handled. The update centers on the mechanics of staking incentives rather than a broader discussion of Ethereum policy or market direction. No additional implementation timeline, numerical parameters, or rollout details were provided in the source material.

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Ethereum

2026-08-14 12:00:00

Ethereum and Solana face the same staking inflation trap

Ethereum and Solana are wrestling with the same policy problem: leave staking rewards where they are, and capital keeps concentrating around large validators and institutional staking providers; cut those rewards, and smaller node operators may be pushed out first. The debate is no longer just about token inflation. It now reaches into validator economics, DeFi collateral structures, and the practical limits of decentralization. On Ethereum, researchers including Justin Drake and Jérôme de Tychey published the early-stage EIP-8363 draft on Aug. 4. The proposal would progressively burn a larger share of validator rewards as the total amount of staked ETH rises. At 60.25 million staked ETH, roughly half of total supply, the burn rate would reach 100%, taking inflation-based staking yield to zero. Critics including Aave founder Stani Kulechov, SharpLink CEO Joseph Chalom, and ether.fi’s Mike Silagadze pushed back within days. Solana is dealing with a parallel set of tensions. Its SIMD-0550 and SIMD-0553 proposals are under vote through Aug. 18, with passage requiring support from more than 66.67% of staked SOL. The article argues that both chains are being forced to choose between different paths to centralization, rather than a clean route away from it.

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Ethereum

2026-08-12 14:45:44

EIP-8363 sparks fierce Ethereum debate over staking rewards, centralization, and treasury-company risk

A draft Ethereum Improvement Proposal, EIP-8363, has triggered one of the sharpest governance fights in the network’s recent history by proposing a gradual burn of validator issuance rewards as the staking ratio approaches half of ETH supply. Backers argue the mechanism would cap excessive staking, slow net supply growth, and reinforce ETH’s scarcity case. Critics say it could do the opposite of what it intends: squeeze out independent stakers, leave exchanges and custodians with an even larger role, disrupt DeFi’s implicit benchmark rate, and weaken the economics behind liquid staking. The debate reaches well beyond protocol researchers. Aave founder Stani Kulechov, Lido, ether.fi, and several listed ETH treasury companies have all become part of the conversation because the proposal could cut a meaningful share of staking-linked revenue. Under estimates cited in the source article, validator issuance returns at the current staking ratio could fall from about 2.6% to around 1.2%, while total validator returns would decline by less because fees and MEV would remain untouched. The proposal is still at the Draft stage and was not included in the confirmed proposal list for the Hegotá upgrade, but the fight has already exposed a deeper split inside Ethereum over how much staking is enough and who should be paid for securing the chain.

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Ethereum

2026-08-12 08:59:26

EIP-8363 debate grows as critics warn slashed staking yield may not solve Ethereum centralization

Debate around Ethereum Improvement Proposal 8363 has intensified after a market analysis argued that the proposal could curb staking growth without fixing the core concentration problem it is meant to address. Introduced on Aug. 4, 2026, EIP-8363 would burn a portion of validators’ consensus-layer rewards along a new issuance curve, with issuance falling to zero once 50% of all ETH is staked. Supporters frame the idea as a way to improve credible neutrality, reduce capture risk, limit dilution, and slow the rise of liquid staking tokens as default DeFi collateral. The analysis, however, says the design mainly compresses the range where ETH staking becomes uneconomic rather than changing who is structurally advantaged. In that view, independent stakers would still be the first to hit negative real returns, while large operators would keep their edge through lower fixed costs, better uptime, more MEV access and bulk efficiencies. The piece also warns that a sharp drop in base staking yield could ripple through Ethereum DeFi, lowering ETH lending rates, reversing leverage incentives, driving vault outflows and reducing total value locked. It adds that businesses built around Ethereum yield, including services the network was designed to support, could see margins squeezed and may unwind staked ETH positions.

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