A group of Ethereum researchers, including Justin Drake, published a draft Ethereum Improvement Proposal that would introduce a "tapered issuance burn," deducting and permanently destroying a portion of validators’ "idealized" rewards that scales with the network’s overall staking ratio.
The proposal, authored by pintail, Jérôme de Tychey, dapplion, pa7x1, Ladislaus von Daniels and Ethereum Foundation researcher Drake, sets a saturation balance of about 60.25 million ETH — roughly half the current supply — at which the burn fraction reaches 100% and net consensus-layer issuance for performing duties falls to zero.
In other words, a rising portion of each validator’s rewards would be burned as the total amount of staked ETH grows.
At roughly 50% of all ETH staked, the burn would cancel out those rewards completely.
The authors argue that the current system still pays a small yield no matter how much is staked, encouraging more staking.
