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Ethereum Proposal Would Let Validators Redirect Up to 10% of Staking Rewards, Becoming Mandatory if Majority Approves
A governance proposal published June 22 on Ethereum’s research forum would let validators redirect 0% to 10% of staking rewards to ecosystem funding. If a majority signals support for a nonzero rate, the contribution would become mandatory for all validators.
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A governance proposal published on Ethereum’s research forum on June 22 would let validators redirect between 0% and 10% of their staking rewards to ecosystem funding. CoinDesk reported that if a majority of validators signal support for a nonzero redirect rate, the contribution would become mandatory for all validators.
Redirected funds would be distributed via a “splitter” contract based on validators’ stated preferences.
The mechanism is intended to address underfunding of shared infrastructure, security research and public goods that benefit the network. Validators receive roughly 700,000 ETH per year in staking rewards at current levels. CoinDesk reported that a 5% to 10% redirect rate could send 50,000 to 70,000 ETH annually toward ecosystem funding, valued at approximately $120 million at current ether prices.
The proposal was authored by Shaurya Malwa and edited by Omkar Godbole. It remains under discussion and has not yet moved to a formal voting process. Validators secure Ethereum by locking up ETH, validating transactions and earning staking rewards.
Most ETH is staked through firms, liquid-staking protocols or exchanges rather than by individuals running their own validators.
