Ethereum Developers Propose 50% Staking Supply Cap via New EIP-8361

BitcoinWorld Ethereum Developers Propose 50% Staking Supply Cap via New EIP-8361 Ethereum Foundation researcher Justin Drake, along with other core developers, has formally submitted EIP-8361, a proposal designed to prevent excessive staking on the network.

The proposal introduces a tapered issuance burn mechanism that would gradually reduce new validator rewards to zero once the total staked ETH reaches 50% of the supply.

This move aims to curb over-locking of ETH, mitigate centralization risks, and allow staking participation to settle at a more organic level. How the Tapered Issuance Burn Works Under EIP-8361, as the staking ratio increases, a portion of validator rewards would be burned.

When staked ETH reaches approximately 60.25 million ETH—roughly half of the total supply—all newly issued rewards would be fully burned. This mechanism is designed to discourage unnecessary over-staking while maintaining network security.