Unchained · Wednesday, August 12, 2026
A proposal, identified as BIP 8361, suggests significantly reducing Ethereum's staking rewards, potentially to zero. The mechanism involves burning a rising share of validator rewards as the staking ratio increases, reaching a 100% burn rate at 60.25 million ETH staked, or roughly half of the total supply. This phased approach, intended to be implemented over 18 months, would burn newly issued ETH, not transaction fees or tips.
“Which is basically this. It's bringing Ethereum staking rewards down significantly, possibly to zero. Where what it does is burns a rising share of validator rewards as the staking ratio climbs, hitting a 100% burn rate at 60 and a quarter million eth, or roughly half of the supply.”
“Phases in over about 18 months and burns only newly issued eth. This is not transaction fees or tips.”
“Right now about 41.5 million eth is staked, 34% of supply, with 2.5 million more in the queue.”