Six authors including Ethereum Foundation’s Justin Drake published a draft proposal on Aug. 4 that would burn a growing fraction of validator rewards as more ETH is staked, bringing net consensus-layer issuance to zero when 50% of the supply is staked. About 33% of ETH is currently staked, roughly 40 million, and the consensus layer pays about 1.054 million ETH per year, or 2.62%. The proposal would introduce a burn based on a saturation constant of 60,250,000 ETH, with a phased reduction of net consensus yield from 2.6% to 1.2% over 18 months. Liquid staking protocols hold $34.9 billion, with Lido alone at $17.6 billion. ETH traded at $1,862 on Aug. 4. The proposal status is Draft and requires a hard fork.
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