Bankless · Monday, August 10, 2026
A new Ethereum Improvement Proposal (EIP) aims to cap the amount of ETH that can be staked, arguing that current levels overpay for security. The proposal, originating from Ethereum Foundation researchers, suggests that staking rewards should be reduced to disincentivize further staking and prevent the dominance of staked ETH derivatives. However, the EIP has faced significant backlash from developers, stakers, and DeFi participants.
“And the concern in this EIP, the problem that this EIP is trying to address is, is that there is no constraint on the amount of Ether that will be staked to Ethereum.”
“Everyone hates it. I would say everyone outside of the EF does not like this EIP. Even people inside of EF. Yeah, even some people inside of the EF.”
“And so that's why I have Stani from Abe and Mike from Etherfy here on the show to get some of their reactions and to elevate their voices about the problems that this EIP creates for them and for the broader DeFi and builder ecosystem”