The share of Ethereum (ETH) supply staked has risen to 34%, from about 29% at the start of the year. This increase has led to concerns about the sustainability of native yield on Ethereum. Researchers including Justin Drake have proposed EIP-8361, a “tapered issuance burn” that would begin destroying a growing share of validator rewards as staking ratios climb. The authors predict annual consensus yield could fall from about 2.6% to 1.2%, phased over 18 months.
The proposal for EIP-8361 may impact all stakeholders, including centralized operators and custodians, affecting their potential revenue streams. While this would reduce the marginal incentive to stake more for validators, it could have a more severe effect on ETH treasury firms like Bitmine (BMNR) and Sharplink (SBET), which rely on native yield to generate profits.
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Written by Sarah Whitmore
Ethereum Desk
