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ETH Ethereum developers propose a 50% pledge supply cap through new EIP-8361
Ethereum Foundation researcher Justin Drake and several core developers have formally submitted an EIP-8361 proposal to prevent excessive pledges on the Internet. The proposal introduces a gradually diminishing issuance destruction mechanism: when the total amount of ETH pledged reaches 50% of the total supply, the new verifier reward will gradually decrease to zero. The move aims to curb over-locking of ETH, reduce centralized risks, and return pledge participation rates to a more natural level.
How the diminishing issue destruction mechanism works
According to EIP-8361, as the pledge ratio increases, some verifier rewards will be destroyed. When the pledged ETH reaches approximately 60.25 million (approximately half of the total supply), all newly issued rewards will be completely destroyed. The mechanism aims to curb unnecessary excessive pledges while maintaining network security. Reward reductions will be phased in over 18 months to minimize market shocks and give validators time to adjust.
Background and Reason
This proposal stems from the continued concern of the Ethereum community about the rapid growth of pledges. High pledge participation can lead to centralization as large institutional players and liquidity pledge agreements accumulate significant control. By introducing a natural economic braking mechanism, EIP-8361 aims to maintain a balance of pledge participation and reduce the risk of excessive network concentration.
Market and Industry Impact
The proposal triggered reactions from key figures in the DeFi field. Aave founder Stani Kulechov has previously expressed concern that such caps could prompt institutional investors relying on stable returns to look to other blockchain networks. However, supporters believe that Ethereum's long-term health is more important than short-term earnings considerations. The 18-month transition period is designed to ease this shift and provide clear expectations for institutional participants.
Conclusion
EIP-8361 is an important step in solving the sustainability issue of Ethereum pledge. By capping pledge rewards at 50% of supply, the proposal aims to balance cybersecurity, decentralization and market stability. Although the full impact remains to be seen, gradual implementation and clear reasons provide a thoughtful framework for Ethereum's future pledge economy.
FAQs
Q1: What is EIP-8361?
EIP-8361 is a proposal put forward by Ethereum Foundation researcher Justin Drake and other core developers to limit pledge rewards when pledged ETH reaches 50% of the total supply. It adopts a diminishing issuance destruction mechanism to gradually reduce new rewards to zero, thereby curbing excessive pledges.
Q2: Why do I need a pledge upper limit?
Excessive pledge may lead to centralized risk because large households and liquidity pledge agreements gain excessive influence. The cap is designed to maintain balanced pledge participation and reduce the possibility of the network being controlled by a few entities.
Q3: How will this cap affect current pledgers?
The reduction in rewards will be gradually implemented within 18 months, giving pledgers time to adjust. The initial rewards will slowly decline. If the pledge ratio still exceeds 50%, the rewards will eventually be completely destroyed, making participants who are purely pursuing income lose the appeal of pledges.
