Ethereum Proposal Seeks to Cap ETH Staking at 50% of Supply

A group of Ethereum contributors has proposed EIP-8361 as a way to reduce staking incentives to ensure that no more than 50% of the supply is locked up by validators.

That proposal has triggered a heated debate over whether Ethereum should prioritize lower issuance or maintain staking incentives for network participation and DeFi activity.

EIP-8361 Targets Rising Staking Levels On August 4, Ethereum developer Jerome de Tychey announced the submission of EIP-8361, titled “Tapered Issuance Burn,” alongside contributors including Pintail, Dapplion, Pa7x1, Ladislaus0x, and Justin Drake.

In a series of posts on X, de Tychey argued that Ethereum’s current staking model has no point where incentives naturally slow down. He also noted that the staking ratio passed one-third of the ETH supply in April 2026 and continues to rise.