Authors Withdraw Ethereum Staking Reward Burn Plan From Hegota Upgrade, Seek Separate Process

A proposal to burn a growing share of Ethereum staking rewards will not be part of the network’s Hegota upgrade. Ethereum France president Jérôme de Tychey, a co-author of the proposal, withdrew EIP-8363 from consideration for the hard fork on Thursday, in a post to the proposal’s Ethereum Magicians thread that he also shared on X.

As the upgrade’s scoping process moved forward, “several parties in the industry as well as core protocol and client contributors voiced that a fork scoping exercise was not the right venue to settle an issuance policy change,” de Tychey wrote in his post on Ethereum Magicians.

“We agree and we’d rather acknowledge this now than carry on towards Hegotà in this context,” he added. “The topic is too important and raised too many concerns that it deserves its own process.”

The withdrawal was on the agenda for Thursday’s All Core Devs consensus call, where developers are still setting the fork’s scope. Hegota’s meta EIP lists EIP-8363 only as proposed for inclusion, the earliest stage.

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Titled “Tapered Issuance Burn,” the EIP would have burned a slice of each validator’s rewards, with the burned fraction rising as more ETH is staked until it hits 100% at 60.25 million ETH, roughly half the supply.

Its six authors, including de Tychey and Justin Drake, planned an 18-month phase-in. The EIP estimated the burn would cut net yield “by more than half, from about 2.6% to 1.2%” if it were imposed in full at the roughly 33% staking ratio the proposal cited when it was written this summer.

De Tychey wrote on X that the proposal became “one of the most commented-on EIPs in the history of the Ethereum-Magicians forum.” DeFi figures including Aave’s Stani Kulechov pushed back in August. In a Sept. 7 tier list, the Ethereum Foundation’s Protocol cluster unanimously declined it for Hegota, calling the grade “not a judgement on the merits of the proposal,” as Unchained reported.

De Tychey said the authors still stand by the EIP’s motivation, and he thanked Lido, the liquid staking protocol, for offering to help steer a dedicated issuance process.

His draft schedule runs from an issuance forum at Devcon in November to EthCC in April, where the aim is to “reach CFI / SFI” for a proposal.

Kulechov, Aave’s founder and CEO, called the withdrawal a “Great move.” Anthony Leutenegger, CEO of Aragon and a Lido delegate, wrote that it was a “Smart decision,” adding: “Glad this got shut down and future conversations can happen at a more sensible time, with less risky tradeoffs.”

Oisín Kyne, CEO and co-founder of Obol, thanked de Tychey “for engaging in good faith with a smile on your face through a long onslaught.”

Related Listen: EIP-8363: Should ETH Be Sound Money or a Productive Asset?

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