Ethereum Proposal Would Burn Staking Rewards to Zero if Half of ETH Is Staked
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A proposed Ethereum update would eliminate staking rewards if half of the total ETH supply is staked, effectively ending the incentive to participate in the staking process beyond that threshold. The yield cut would be phased in over 18 months, potentially altering the dynamics of Ethereum's staking ecosystem and its overall security.
The incentive to stake beyond half the supply would disappear at activation, with the yield cut phasing in over 18 months.