Ethereum's Hegotá upgrade will not include EIP-8363, a proposal to burn part of validators' staking rewards, after its authors withdrew it on October 1.
Jérôme de Tychey, president of Ethereum France and one of six authors, announced the withdrawal on the Ethereum Magicians forum. He stated that industry players, core protocol contributors, and client teams had raised concerns that a fork was the wrong venue for an issuance policy change. The authors agreed with this assessment.
"The topic is too important and raised too many concerns that it deserves its own process," de Tychey wrote.
How the Proposal Worked
EIP-8363 would have burned a share of each validator's rewards at every epoch, with the burn percentage increasing as more ETH becomes staked. The burn would reach 100% once approximately 60.25 million ETH is staked—roughly half the total supply—meaning staked ETH would earn no issuance rewards beyond that threshold.
Under the proposal, net yield would have dropped from about 2.6% to 1.2% at a 33% staking ratio, though the burn was designed to phase in over 18 months to ease the transition.
Timeline and Community Response
The proposal emerged on August 4 and was presented to the consensus call on August 6. Lido's representative requested the authors withdraw it from Hegotá, citing insufficient time for preparing counter-proposals and planned issuance changes in later forks.
The proposal rapidly gained attention, accumulating over 200 comments in the Ethereum Magicians forum. By late September, the Nimbus client team ranked it in tier D, one step above declining it.
The authors plan to pursue a separate issuance process, with a timeline running from November through EthCC in April, where they aim to re-engage core developers.
Hegotá's confirmed proposals are FOCIL and Frame Transactions, which the Ethereum Foundation protocol teams designated as must-ship features.
