The #Ethereum community is considering reforming the staking reward model—only incentivizing staking up to a certain threshold, with no extra rewards beyond that. Two key drivers: 1⃣Rising inflation: As L2 adoption grows, L1 fees and ETH burns drop, shifting ETH supply from deflation to inflation. 2⃣Excessive staking risk: With withdrawals open, staking friction nears zero, potentially leading to most ETH being staked raising dilution and centralization risks. Proposed changes aim to: ✅Reduce net issuance and supply growth ✅Avoid unnecessary dilution without hurting security ✅Lower long-run tail risks This could increase ETH scarcity and support its price over time. ETH is a functional commodity—not a financial claim—so revising the reward model may boost its store-of-value appeal. Ethereum may soon adjust staking rewards to curb supply growth and tail risks. We see this as positive for ETH