CoinDesk·4 min read·medium
New Ethereum proposal would cut issuance to zero if staked ETH reaches $112 billion
S
Shaurya Malwa
✦AI Summary
A new Ethereum proposal suggests gradually reducing staking rewards to zero once 50% of the total ETH supply is staked to prevent network over-saturation and dilution. Proponents argue this will enhance long-term scarcity, while critics warn it could destabilize DeFi lending markets and disadvantage solo stakers.
The burn would hit 100% once roughly 60.25 million ETH (about half the total supply) is staked, driving net issuance to zero and potentially strengthening ETH’s long-term scarcity and valuation by limiting further dilution of existing holders.
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