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Ether.fi splits restaking from weETH as rewards debate escalates
The firm moved restaking into a new token, weETHs, after Ethereum researchers proposed cutting staking rewards to zero once staking participation passes a threshold.
Ether.fi has separated standard Ethereum staking from restaking exposure by removing restaking from its main token, weETH, and creating a separate token, weETHs, for restaking rewards.
The change gives holders a direct choice: use weETH for plain Ethereum staking rewards, or use weETHs to access higher-yield, higher-risk restaking exposure, with restaking described as using the same locked ether for an additional set of services.
CoinDesk reports that Ether.fi’s restaking split follows a wider debate over Ethereum staking rewards. A group of Ethereum researchers proposed that the network stop paying staking rewards once roughly half of all ether is locked up, a move Ether.fi founder Mike Silagadze argued would disadvantage smaller stakers and staking-based products.
Ether.fi is described as holding about $3.55 billion in customer deposits, with the business capturing about $223 million in annualized fees. In the second quarter, it earned $41 million in gross revenue and nearly $10 million in earnings after rewards and other costs, with about $30,000 distributed to ETHFI holders through buybacks.