EIP-8363 proposal to burn validator staking rewards withdrawn from Ethereum's Hegotá upgrade; authors to pursue separate governance process.
Regulation & Gov ·
The authors of EIP-8363, a proposal to burn validators' staking rewards, withdrew it from Ethereum's Hegotá upgrade after discussions with industry participants and protocol developers concluded that an issuance policy change required a separate governance process rather than inclusion in a fork upgrade. The proposal accumulated over 200 comments on the Ethereum Magicians forum but was deemed too consequential for the current upgrade's scope.
Under the mechanism outlined in the proposal, validators would have had a portion of their staking rewards burned at each epoch, with the burn rate increasing as total staked ETH rose. At a staking ratio of 33 percent, the measure would have reduced net validator yield from approximately 2.6 percent to 1.2 percent, phased in over 18 months. The burn would eventually reach 100 percent once about 60.25 million ETH was staked.
The authors now intend to pursue a dedicated issuance process spanning November through April, when they plan to present the proposal again to core developers at EthCC. The timing and exact parameters for the separate governance track remain to be finalized.