Ethereum researchers have published a proposal (EIP-8363) aimed at gradually reducing staking rewards as more ETH is staked, with the staking rate having exceeded 33% in April. Without intervention, over 55% of ETH supply could be locked in staking by 2028. The proposal has sparked fierce opposition from developers, solo stakers, and DeFi protocol founders, who warn it could force individual validators off the network in favor of large centralized entities. One of the proposal’s authors, Jérôme de Tychey, argues that continued staking growth risks concentrating ETH in the hands of large custodians and liquid staking providers.
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