Ethereum Community Submits New EIP: Limits Staking Growth Via "Decreasing Issuance Burn" Mechanism, Aiming to Keep ETH Staking Rate Below 50%

TechFlow News, August 04: The Ethereum community submitted a new improvement proposal EIP-8361 "Tapered Issuance Burn", aimed at adjusting the ETH issuance mechanism to reduce centralization and dilution risks caused by excessive staking ratios. The proposal points out that the ETH staking ratio exceeded 1/3 of the total supply in April 2026 and continues to grow. Under the current issuance curve, even if all ETH participates in staking, the staking yield will not fall below approximately 1.5%, resulting in a lack of an "off switch" for staking incentives.

The EIP proposes burning a portion of validators' theoretical rewards in each epoch, with the burn ratio increasing as the staking scale grows: when the staking ratio reaches approximately 50%, net staking yield will gradually drop to 0. According to the design, under the tapered issuance mechanism, ETH issuance volume will peak when the staking ratio is approximately 20%, with an annual issuance rate of approximately 0.5%, and drop to zero when the staking ratio reaches 50%. Combined with EIP-1559 and Blob fee burning mechanisms, ETH supply may enter a deflationary state more frequently in the future.