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

The Ethereum community has submitted a new improvement proposal, EIP-8361 "Tapered Issuance Burn," aiming to adjust the ETH issuance mechanism and reduce centralization and dilution risks brought by an excessively high staking ratio. 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 be lower than approximately 1.5%, leading to a lack of an "off switch" for staking incentives. The EIP proposes burning a portion of validator theoretical rewards in each epoch, with the burn ratio increasing as the staking scale increases: when the staking rate reaches approximately 50%, the net staking yield will gradually drop to 0. According to the design, under the tapered issuance mechanism, ETH issuance volume will peak at a staking rate of approximately 20%, with an annual issuance rate of about 0.5%, and drop to zero when the staking rate reaches 50%. Combined with EIP-1559 and the Blob fee burn mechanism, ETH supply may enter a deflationary state more frequently in the future.