Ethereum's Staking Innovations Fuel Policy Debate

This surge in Eth stakers is expanding the staking pool, which has led to a debate in the Ethereum community.

Let’s discover more about Ethereum’s staking in this article.

Rising ETH Stakers Ignite Community Debate

Due to increased activities in the Ethereum staking pool, the community proposed slowing down the Ethereum issuance rate. If this happens, what’s the fate of ETH stakers? Stakers’ rewards will be reduced compared to their earnings from the staking pool. The proposal will increase the value of ETH over staked ETH; stETH.

According to Glassnode, the rapid increase in ETH staking led to over 31.4 million ETH in the staking pool, which is 26% of the total supply of Ethereum. The Eigenlayer protocol introduced innovations that would solve significant issues encountered with staking. They are Restaking and liquidity restaking.

Every blockchain network has a mechanism to oversee its activities. The Ethereum network uses the Proof-of-Stake mechanism, which decreases rewards whenever the staked ETH increases. With a 31.4 million staked ETH rise, validators earn 3.2% yearly. The innovation on Eigenlayer protocols increased the number of stakers.

Staking Growth: Liquid Restaking

When you stake funds via Eigen’s liquid restaking, you earn liquid versions of your funds in return. So, you get a 63% liquid version of your staked funds. An increase in stETH could reduce the value of ETH for ETH holders.

For ETH to continuously maintain its value, the community proposed a switch in ETH’s monetary policy. The Ethereum network also made a few upgrades that significantly reduced the growth of ETH staking pools.


According to Glassnode, over 31.4 million ETH staked could lead to a decline in Ethereum’s value for transactional purposes. The idea proposed by the community will face many dismissals, especially by ETH stakers, but this is for the good of ETH and the community. Follow through with our blog updates to know what’s next in this debate.



The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.