The Hegotá upgrade aims to introduce more native privacy for Ethereum applications. Ethereum developers are currently reviewing 66 proposals to narrow them down as part of scoping the next major Ethereum upgrade, Hegotá, with several proposals aimed at bringing more privacy capabilities into the protocol. FOCIL is currently the only Ethereum Improvement Proposal (EIP) scheduled for inclusion in the upgrade. Frame Transactions (EIP-8141), Keyed Nonces (EIP-8250) and Recent Roots for Frame Transactions (EIP-8272) should also be included to “unlock native privacy, allowing privacy apps to work without having to rely on intermediaries,” wrote Ethereum Foundation contributor Toni Wahrstätter in a Sunday X post. FOCIL, short for Fork-choice enforced inclusion lists, seeks to allow a committee of validators to force pending transactions into blocks to boost the network’s censorship resistance, while the other proposals could provide protocol primitives for privacy applications. Read more
Fidelity plans to add staking to its Ether fund, with 85% of rewards retained by FETH and quarterly cash distributions planned for investors. Fidelity Investments plans to add staking to its spot Ether exchange-traded product, the Fidelity Ethereum Fund (FETH), according to its Tuesday filing with the US Securities and Exchange Commission (SEC). The asset manager said FETH could stake up to 100% of its Ether under normal conditions, excluding ETH reserved for redemptions, expenses and liquidity needs. The fund would retain 85% of staking rewards, with 15% going toward staking fees, and plans quarterly cash distributions, although payouts are not guaranteed. Fidelity expects staking to begin “as soon as practicable” after the prospectus date. The preliminary prospectus remains subject to change before the registration statement becomes effective. Read more
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