Ethereum staking reward burn proposal EIP-8363 pulled from Hegota upgrade

EIP-8363 withdrawn from Hegota upgrade

Co-authors of EIP-8363, a proposal to burn a rising share of Ethereum validator rewards as more ETH is staked, withdrew it from consideration for Ethereum's upcoming Hegota upgrade on October 1. The move comes after industry participants and core contributors argued that a fork scoping process is not the right place to settle an issuance policy change.

Jérôme de Tychey, co-author and president of Ethereum France, confirmed the withdrawal in a post on X, saying the authors agreed with critics and wanted to acknowledge the concern rather than push through the current process.

Key details from the withdrawal

• EIP-8363 would burn a growing share of staking rewards as total staked ETH increases, reaching 100% burn at about 60.25 million ETH or roughly half of the supply.
• The change was designed to phase in over about 18 months.
• At the 34% staking rate seen in mid-August 2026, the proposal would cut annual consensus yield from about 2.6% to 1.2%.
• The proposal had become one of the most commented-on EIPs in the history of the Ethereum-Magicians forum.
• Objections raised fell into five categories: security, industry impact, burn curve design, validator set makeup, and effects on solo stakers.

What de Tychey says about the next steps

De Tychey outlined a multi-node process aimed at giving the issuance question its own dedicated discussion path. The timeline includes:

• An issuance forum at Devcon in November, following a first roundtable at EthCC 2026.
• Workshops after Devcon and in February and March.
• A tentative forum at a Columbia University cryptoeconomics workshop in January.
• A final forum at EthCC in April, where authors hope to reach CFI or Scheduled for Inclusion status with core developers.

Liquid staking protocol Lido has offered to help steer the process. De Tychey said the authors stand by the proposal's motivation, quoting the EIP's argument that a very high staking ratio threatens Ethereum's security, neutrality, resistance to capture, and ETH's role as money.

Who proposed the change and why

The EIP was filed on August 4, just before Hegota's deadline for non-headliner proposals. Authors include Ethereum Foundation's Justin Drake, Pintail, de Tychey, dapplion, pa7x1, and Ladislaus von Daniels.

Industry reaction

SharpLink CEO Joseph Chalom formally opposed the proposal in August, saying it would "undermine DeFi." Aave founder Stani Kulechov called it "hurtful for Ethereum." On October 1, Kulechov quote-posted de Tychey's withdrawal announcement and called it a "great move."

What happens next

Developers continue scoping Hegota, which follows the next update, Glamsterdam. Ethereum co-founder Vitalik Buterin said on September 27 that Hegota is likely to be Ethereum's last "normal" fork, with later upgrades involving recursive STARKs, automated formal verification, optimized consensus, and quantum safety.

Sources

• The Block
• Jérôme de Tychey on X
• EIP-8363