TL;DR:
- The authors have formally withdrawn proposal EIP-8363 from the inclusion process for the Hegota hard fork.
- The mechanism proposed burning up to 100% of issuance rewards upon reaching 60.25 million ETH staked.
- Discussions on monetary policy will continue in dedicated technical forums between November and April.
Developers and co-authors of EIP-8363 have withdrawn the proposal to burn validator rewards from the consideration process for Hegota, Ethereum’s upcoming upgrade.
Jérôme de Tychey, president of Ethereum France and co-author of the text, announced the decision in a post on his X account. The move comes in response to concerns raised by the technical community and core client developers, who argued that scoping out a hard fork was not the appropriate venue to alter the network’s issuance policy.
📋Withdrawing EIP-8363 from consideration for Hegotá.
EIP-8363 rapidly became one of the most commented-on EIPs in the history of the Ethereum-Magicians forum, with 200+ comments in a few weeks. As we progressed through the Hegotà CFI (Consideration For Inclusion) process,… https://t.co/VjoEW11OYH pic.twitter.com/Lp7spyZk0p
— Jerome de Tychey 🦇🔊 (@jdetychey) October 1, 2026
The initiative, submitted on August 4 by researchers including Justin Drake of the Ethereum Foundation, Pintail, dapplion, pa7x1, Ladislaus von Daniels, and de Tychey himself, sparked extensive discussion on the Ethereum-Magicians forum.
The technical framework, dubbed “Tapered Issuance Burn,” sought to introduce a progressive burn curve on validator rewards as the total amount of locked Ether expanded. The scheme projected reaching a 100% burn if staking reached 60.25 million ETH—representing roughly half of the circulating supply—over a phased 18-month implementation timeline.
Market data from mid-August showed that around 34% of the ETH supply remained staked. According to the proposal’s technical projections, at that level of participation, the annual consensus yield would decline from approximately 2.6% to 1.2%.
Roadmap for the Ether Issuance Debate
The drafting team argued in the original document that an excessively high staking ratio could jeopardize neutrality, network security, and ETH’s role as a monetary asset. However, industry objections focused on five areas: industry impact, network security, the mathematical design of the burn curve, validator set composition, and the consequences for solo stakers.
Weeks earlier, industry figures voiced their dissent. Joseph Chalom, CEO of SharpLink, maintained in August that the mechanism would undermine decentralized finance. During the same period, Aave founder Stani Kulechov characterized the measure as counterproductive for the ecosystem, endorsing the withdrawal this Thursday with supportive remarks on social media.
In light of this feedback, the authors agreed to establish an independent discussion channel to address network issuance policy. Liquid staking protocol Lido will assist in coordinating these working sessions, according to details shared by de Tychey.
The established schedule outlines an inaugural forum at Devcon this coming November, following an earlier round at EthCC. The roadmap will continue with workshops between February and March, along with an anticipated gathering at Columbia University in January, aiming for a fresh technical evaluation at EthCC in April.
In the meantime, core developers are pushing ahead with defining the scope of Hegota, the hard fork slated to follow the Glamsterdam upgrade on Ethereum’s official technical roadmap.
