Six authors including the Ethereum Foundation's Justin Drake published a draft proposal on Aug. 4 that would burn a growing fraction of validator rewards as more ETH is staked, taking net consensus-layer issuance to zero at a 50% staking ratio.
The draft, numbered EIP-8361 in its pull request, is titled Tapered Issuance Burn and is credited to authors including Jérôme de Tychey, Ladislaus von Daniels and Drake.
The proposal attacks the one property of Ethereum's issuance curve that no previous reduction plan removed: there is no staking ratio at which the incentive to stake more switches off. Yield falls only with the inverse square root of the staking ratio and keeps a floor of roughly 1.5% however much ETH is staked, so where stake growth stops depends entirely on whether the marginal staker's risk premium stays above that floor. The burn removes the floor and lets the market set the equilibrium instead.
About 33% of ETH is staked today, roughly 40 million ETH, and the consensus layer pays about 1,054,000 ETH a year, or 2.62%, according to the draft. Execution-layer rewards add at most 0.20%, based on the authors' count of about 72,600 ETH in MEV-Boost relay payments across 2.42 million blocks in the year to July 31, plus 190,000 locally built blocks priced at the same mean. Issuance therefore accounts for at least 93% of staking yield.
