Ethereum's staking ratio has climbed to roughly 34% of total supply, with about 41.5 million ETH locked in validators earning a consensus yield near 2.67%. Against that backdrop, a draft proposal called EIP-8363 — "Tapered Issuance Burn" — would progressively burn validator rewards as the staking ratio rises, reaching a 100% burn at 60.25 million ETH, or roughly 50% of supply. The mechanism phases in over 18 months and leaves execution-layer rewards such as tips and MEV untouched.
Submitted on August 4 by a group that includes Ethereum Foundation researcher Justin Drake and EthCC founder Jérôme de Tychey, the proposal argues that the current issuance curve has no off-switch: even if 100% of ETH were staked, the yield would not fall below roughly 1.5%. The authors contend that unchecked staking growth concentrates ETH in large custodians and liquid staking tokens, while perpetual issuance acts as a dilution tax on non-staking holders.
SharpLink CEO Joseph Chalom, a former BlackRock digital assets strategist whose firm holds nearly 887,000 ETH, opposes the change. He argues that staking yield is a foundational pricing input for DeFi markets and that cutting issuance would raise on-chain capital costs, weaken ETH's native yield advantage over Bitcoin, and push some capital out of the Ethereum ecosystem. SharpLink favors increasing ETH scarcity through the existing base-fee burn and network usage growth rather than altering the issuance mechanism.