The new Ethereum EIP proposal targets the issue of staking inflation and prevents excessive growth in staking

The Ethereum community has submitted a new improvement proposal EIP "Tapered Issuance Burn," aimed at adjusting the ETH issuance mechanism to reduce the centralization and dilution risks brought by excessively high staking ratios. The proposal points out that the ETH staking ratio has exceeded 1/3 of the total supply as of April 2026 and continues to grow.

Under the current issuance curve, even if all ETH participates in staking, the staking yield will not be lower than about 1.5%, leading to a lack of a "closure mechanism" for staking incentives. This EIP proposes to destroy a portion of the theoretical rewards for validators in each epoch, with the destruction ratio increasing as the staking scale grows: when the staking rate reaches about 50%, the net staking yield will gradually decrease to 0. The proposal believes that this mechanism can limit the continuous expansion of ETH supply, reduce the dilution pressure on holders; prevent excessive concentration of staking in custodial institutions and staking service providers; and maintain ETH's properties as a neutral asset and value storage tool.

According to the design, under the tapered issuance mechanism, the ETH issuance will peak at a staking rate of about 20%, with an annual issuance rate of about 0.5%, and will drop to zero when the staking rate reaches 50%. Combined with the EIP-1559 and Blob fee destruction mechanisms, the ETH supply may more frequently enter a deflationary state in the future. The authors of the proposal state that this plan is not aimed at individual stakers but rather corrects the long-term dilution issues brought by the current issuance curve, allowing staking yields to ultimately be determined by market risk premiums rather than fixed algorithmic incentives.