TLDR Tech / Crypto
Ethereum's Proposed Reward Curve Change
Ethereum's proposed staking reward curve change, co-authored by EF researchers Anders Elowsson, Ansgar Dietrichs, and Caspar Schwarz-Schilling, replaces the uncapped square-root issuance schedule with a dampened curve (factor: 1 + D/k, k = ~67M ETH) that peaks at that staking level and declines beyond, reducing daily validator issuance from the current ~2,700 ETH against only ~90 ETH burned via EIP-1559. Elowsson estimates that two-thirds of the issuance reduction eliminates deadweight costs accruing to validators (hardware, risk, taxes, and opportunity cost), while one-third redistributes surplus from stakers to all ETH holders. Lido's Dima Gusakov argues the change kills LSTs, but the article counters that Lido's ~30% share of staked ETH is the primary systemic risk, with stETH's growth trajectory threatening to displace ETH as Ethereum's base monetary asset.
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