Ethereum Improvement Proposal EIP-8363, known as "Tapered Issuance Burn," proposes cutting new ETH issuance to zero once 50 percent of Ether's total supply is staked. Authors including Justin Drake from the Ethereum Foundation and Jerome de Tychey, ETHCC co-founder, argue that additional staking provides diminishing security returns and that Ethereum should cease subsidizing further staking once it achieves sufficient security.
The proposal has drawn strong opposition from protocol builders, staking providers, and institutional investors. Critics warn it could weaken network decentralization, disrupt Ethereum lending markets, and undermine confidence in the network's monetary policy.
Ethereum currently has approximately 41.5 million ETH staked, representing 34.07 percent of total supply. Stakers are earning an annual yield of 2.67 percent, according to the Ethereum Validator Queue. Staking participation has increased 15 percent since the beginning of 2026.
Dr. Steve Berryman, Bitwise's head of client partnerships for Ethereum, argues that market forces are already moderating staking growth. "We will come to a natural ceiling probably by the end of this year," Berryman said. "People need a certain amount of liquidity." He noted that recent staking growth has been driven largely by institutional entrants including Bitmine and BlackRock, and expects participation to slow once these players complete planned allocations.
Ether.fi founder Mike Silagadze has also publicly criticized the proposal, citing concerns about its potential negative impact on the network's long-term health and stability.
