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Ethereum researchers propose burning validator rewards to cap staking at 50%
Ethereum researchers are floating a protocol change, dubbed EIP-8361, that would burn a growing portion of validator rewards as more ETH is staked.
The idea is to reduce incentives for staking expansion by gradually increasing the share of rewards that get burned when the staking ratio rises.
The proposal aims to move the network toward a target staking level of about 50%, according to The Block.
If adopted, the mechanism would directly affect how validator income is generated by pairing reward burning with the growth in staking participation.
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