Ethereum’s proposed EIP-8363 staking overhaul aims to reduce issuance, but critics say it could hurt DeFi, decentralization and institutional adoption. Ethereum researchers just wanted to reduce staking incentives. Instead, they sparked one of the biggest debates over the network’s economics since the Merge. Ethereum Improvement Proposal EIP-8363, or “Tapered Issuance Burn,” would gradually reduce staking rewards as more and more Ether is locked up to secure the network — eventually cutting new protocol issuance to zero once 50% of ETH’s supply is staked. Its authors, including Ethereum Foundation’s Justin Drake and Ethereum Community Conference (ETHCC) co-founder Jerome de Tychey, argue that Ethereum has reached the point where additional staking provides diminishing security returns, while diluting holders who choose not to stake. Read more
EIP-8363 is a newly published draft proposal that would cut net consensus-layer rewards as the Ethereum staking ratio heads toward 50%. A group of six Ethereum researchers and developers, including Ethereum Foundation’s Justin Drake, has proposed changing the network’s issuance policy to cut validator rewards more sharply as the proportion of staked ETH rises. The draft, called the Tapered Issuance Burn and currently being assigned the provisional number EIP-8363, would burn an increasing fraction of validators’ consensus rewards as the amount of staked ETH approaches a fixed threshold of 60.25 million ETH (around 50% of the current ETH supply), at which point the deduction hits 100%. The changes would phase in over 18 months. Read more
Blockaid found Ethereum remained the hardest-hit blockchain in H1 2026, while Solana replaced Arbitrum as the network with the second-highest losses, driven largely by key compromises. Crypto losses topped $1 billion in the first half of 2026 as the industry recorded its highest number of hacks in a six-month period, according to onchain security platform Blockaid. Ethereum and Solana recorded the largest losses from incidents affecting their networks, with roughly $332 million and $326 million in stolen funds, respectively, Blockaid said in its H1 2026 security report published Tuesday. Blockaid tracked 212 security incidents during the period, with the largest single exploit coming from KelpDAO at $292 million, while the platform verified 3.4 times as many high-threshold exploits in H1 2026 as across all of 2025. Read more
Lido launched Curated Module v2, an upgrade that could reduce Ethereum’s validator count by one-third by consolidating validators and introducing new operator rules. Lido, a liquid staking protocol that lets users earn Ethereum staking rewards through its stETH token, has launched an upgrade to its staking infrastructure that aims to improve validator efficiency and decentralization. The upgrade introduces Curated Module v2, which adds support for Ethereum’s 0x02 withdrawal credentials. The change allows validators to increase their effective balance from 32 ETH to as many as 2,048 ETH, according to a Lido update on Monday. Lido said the migration could reduce Ethereum’s validator count to about 628,000 from 880,000, a decrease of about one-third. The migration has not started yet, and the figures are based on Lido’s projections. Read more
Ether trades below its realized price while onchain indicators point to easing selling pressure and recovering demand, though a definitive cycle bottom has yet to emerge. Ether is becoming increasingly attractive from a valuation standpoint, particularly relative to Bitcoin, but onchain data suggests the market has yet to reach a definitive cycle bottom, according to CryptoQuant. In its latest weekly report, the analytics company said Ether (ETH) is trading roughly 17% below its realized price, or the average onchain acquisition cost of all ETH in circulation, of about $2,300. Historically, ETH trading below its realized price has coincided with periods of market undervaluation and long-term bottoms. Ether is also showing signs of improving relative to Bitcoin (BTC). CryptoQuant said that ETH’s market value-to-realized value (MVRV) ratio has retreated from extreme overvaluation, exchange inflows have declined, exchange-traded fund (ETF) holdings have begun to recover after months of weakness, and ETH/BTC spot...