Ethereum developers have proposed a "Tapered Issuance Burn" mechanism that would gradually destroy part of validators' idealized duty rewards as the share of ETH staked increases, bringing net ETH issuance to zero when staking approaches 50% of total supply. The proposal's author said ETH staking exceeded one-third of supply in April, and Jerome de Tychey warned that without changes staked ETH could surpass 70 million, or more than 55% of supply, by January 2028. Supporters argue that excessive staking could first erode the economics for small independent validators, pushing activity toward custodians and large service providers. The plan would be rolled out over 18 months, with about six months of preparation before any potential network upgrade. Aave founder Stani Kulechov said rewards falling to zero above a 50% staking ratio could weaken institutional staking and DeFi (blockchain-based financial services) demand because yields would become more uncertain. He added that ETH lending strategies could also be affected. The proposal remains at an early stage, Bitcoin.com News reported.