A proposal is seeking to implement a staking ceiling on Ethereum, citing concerns about perpetual yield and potential security risks associated with elevated staking activity. The move follows six months of work preceding the upgrade’s launch and is projected to take approximately two years to fully adjust.
The initiative, spearheaded by researchers including Justin Drake at the Ethereum Foundation and Jérôme de Tychey, proposes a system where the proposed staking curve hits zero at 50%. Currently, validators receive compensation for their operations, retaining all transaction fees and tips earned. New ETH creation is also designed to be burned.
According to those involved, the current staking curve never switches off, leading to an ongoing influx of new validators. Approximately 57,600 ETH can activate daily through the queue system, currently holding around 2.5 million ETH. A significant amount – approximately 41 million ETH – is already staked, representing roughly 34% of the total supply.
The proposal anticipates that by January 2028, approximately 70 million ETH will be staked if no further changes are made. This projection considers limitations imposed on the speed at which validators can join or leave the network. A deduction from validator rewards will occur over a period of 18 months.
The plan is being closely watched as it precedes a wider upgrade, Hegotá. CoinDesk has reported on the proposal and Shaurya Malwa contributed to coverage of the initiative. This represents a critical step in managing Ethereum’s staking dynamics.
Written by Sarah Whitmore
Ethereum Desk
