Ethereum Drops EIP-8363 From Hegota Upgrade

Ethereum developers removed EIP-8363 from the upcoming Hegota upgrade after discussions raised concerns about its proposed changes to validator rewards. The proposal would have burned a larger share of rewards as the amount of staked ETH increased.

Jérôme de Tychey, president of Ethereum France, described Hegota’s planning process as unsuitable for resolving a broad debate over Ethereum’s issuance policy. The decision followed discussions among developers, researchers, staking providers and other Ethereum participants.

Under EIP-8363, the burn rate could have reached 100% when about 60.25 million ETH was staked. Developers raised questions about the proposal’s possible effects on network security, validator diversity, solo staking and the staking industry. They also questioned the formula used to calculate the burn rate.

EIP-8363 became one of the most discussed proposals on the Ethereum Magicians forum. Its authors plan to hold forums and workshops before seeking another opportunity to include it in an Ethereum upgrade.

The first planned event is an issuance forum at Devcon in November. Further workshops may take place in the following months, with additional discussions planned around EthCC in April. The proposal could later return through a governance process focused on issuance policy.

Developers are continuing preparations for Hegota after the Glamsterdam upgrade. Ethereum co-founder Vitalik Buterin has described Hegota as a likely final conventional fork. ETH was trading at about $2,701.70, up 0.77% over 24 hours and slightly lower over the previous seven days, according to CoinGecko data.