EIP-8363, titled « Tapered Issuance Burn », proposes to dynamically reduce validator rewards as more ETH gets staked, eventually burning them entirely when 50% of total supply is staked, or roughly 60.25 million ETH. Currently, about 34% of ETH supply is staked with validators earning approximately 2.6% annually in consensus rewards; under this proposal, yield would compress to roughly 1.1 to 1.2%. Proponents, including Ethereum Foundation researcher Justin Drake and EthCC founder Jérôme de Tychey, argue it would curb dilution and push ETH closer to its deflationary monetary ideal. Opponents, including SharpLink CEO Joseph Chalom, worry about impacts on institutions that built products around ETH’s income profile and DeFi protocols using ETH as productive collateral. EIP-8363 remains a draft proposal not yet included in the Hegota hard fork inclusion list.
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