A new Ethereum proposal would gradually reduce ETH issuance to zero if the total value of staked Ether reaches $112 billion. The plan is designed to curb staking concentration and protect the network's long-term economic health.
The concentration concern
Staking on Ethereum has grown rapidly since the Merge. More than 30 million ETH is now locked in the deposit contract, worth well over $100 billion at current prices. That growth has raised alarms about centralization. A handful of large staking pools and liquid staking protocols now control a significant share of the validator set. The proposal's authors argue that if left unchecked, concentrated staking power could undermine the network's security and neutrality. Cutting issuance to zero would remove the economic incentive for further accumulation, they say.
How the cut would work
The proposal doesn't call for an immediate halt to new ETH. Instead, it outlines a progressive reduction in issuance as the staked supply approaches the $112 billion threshold. The exact mechanism and timeline are still being debated, but the goal is clear: once staked Ether hits that mark, no new ETH would be minted from staking rewards. That would effectively cap the total supply of staked ETH and force validators to compete on fees rather than rely on inflationary rewards.
The proposal is now circulating among Ethereum developers and the broader community. It will likely go through the Ethereum Improvement Proposal process, which includes review, testing, and a final decision by core developers. No timeline has been set. The idea is certain to spark debate. Validators who rely on staking rewards may push back, while those worried about centralization will likely support it. Whether the community can reach consensus on such a fundamental change to Ethereum's monetary policy remains an open question.
