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Ethereum Proposal to Burn Validator Rewards Could Reshape ETH Supply

Ethereum Proposal to Burn Validator Rewards Could Reshape ETH Supply

Ethereum researchers have proposed a major change to the networks staking economics that would gradually burn newly issued validator rewards as more ETH is staked, a move aimed at reducing inflation and strengthening Ethereums long-term scarcity. The proposal, signed by six researchers including Ethereum Foundations Justin Drake, would progressively increase the percentage of newly created ETH that is burned every epoch.

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