Lookonchain APP

App Store

Ethereum's New Proposal Suggests Validators Allocate Up to 10% of Staking Rewards for Ecosystem Development, Annually or Upon Accumulating Over 70,000 ETH

2026.06.22 15:02:03

On June 22, the Ethereum Research Forum unveiled a new governance proposal called "Validator Redirected Revenue," which would let validators shift between 0% and 10% of their staking rewards toward funding development tools, security research, public infrastructure, and other ecosystem public goods. Under the proposal, validators would first voluntarily signal the percentage of rewards they’re willing to contribute. If more than half of all validators back a non-zero contribution rate, the mechanism would apply to every validator. Nodes can also name specific fund recipients, and the money would flow automatically via a dedicated allocation smart contract. The Ethereum ecosystem currently grapples with the so-called "free-rider problem": countless projects rely on public infrastructure, research, and security work but have no consistent way to fund these efforts. As long-term ETH holders, validators should shoulder a share of the costs of Ethereum’s growth. Current data puts Ethereum validators’ annual staking rewards at roughly 700,000 ETH. If a 5% to 10% contribution rate is eventually approved, some 50,000 to 70,000 ETH would go toward ecosystem support each year—worth roughly $1.2 billion at today’s prices. But the proposal has already sparked debate. Critics worry that validator alliances could coordinate to direct funds to favored groups. What’s more, a huge chunk of ETH is staked by third parties like crypto exchanges and liquid staking platforms—meaning delegators, not the institutional node operators running validators, would end up taking the hit to rewards. This creates what’s known as a "decision-maker/payer misalignment" problem. Other critics argue that if validators are ready to give up some rewards, Ethereum could simply cut back on ETH issuance directly instead of setting up a new fund distribution system. Right now, the proposal is still being hashed out in community discussions and hasn’t moved to a formal vote yet.
Relevant content

SoftBank secures $10 billion margin loan using its OpenAI stake as collateral.

SoftBank Group has successfully secured a $10 billion margin loan using its stake in OpenAI as collateral. The two-year loan is provided by a consortium of lenders including Goldman Sachs, JPMorgan Chase, Mizuho Securities, Apollo Global Funding, and Sumitomo Mitsui Banking Corporation (SMBC). SoftBank plans to complete the fund drawdown this month.

1 minutes ago

Citigroup lowers SanDisk's target price from $2,500 to $2,100

Citigroup research report cuts SanDisk (SNDK.O) price target from $2,500 to $2,100.

1 minutes ago

X Layer DeFi's Total Value Locked (TVL) has surged past $100 million, growing nearly tenfold in half a year.

OKX Wallet announced in a Chinese post that X Layer’s DeFi total value locked (TVL) has surpassed $100 million, growing nearly tenfold over the past six months. Meanwhile, X Layer’s stablecoin issuance volume has exceeded $2 billion, ranking among the top 10 global public blockchains. Its cumulative active addresses have broken through 4.2 million, and cumulative on-chain transactions exceed 400 million. OKX Wallet noted that with continued liquidity accumulation and steady growth in its user base, its next step will be to attract more assets, applications, and users to X Layer, driving the public blockchain to support more real-world demands and further refine its ecosystem development.

1 minutes ago

Crypto exchange Bitget has signed a cooperation agreement with the Gelephu Mindfulness City Authority, with plans to establish an office in Bhutan.

Crypto exchange Bitget has recently signed a cooperation agreement with Bhutan’s Gelephu Mindfulness City Authority (GMCA). Under the terms of the deal, Bitget will establish a legal entity in Gelephu Mindfulness City (GMC), prepare applications for relevant financial service licenses under the regulatory framework of the Gelephu Financial Services Office (GFSO), and collaborate with GMCA on operational, regulatory, and ecosystem development workflows. Per the plan, Bitget will also gradually set up local offices and carry out local recruitment, supporting local talent cultivation and long-term development. As a special administrative zone in southern Bhutan, GMC is being built into a next-generation international financial and innovation hub, with its virtual asset regime governed by the Financial Services Act 2025. Jigdrel Singay, a director of the GMC Board, noted that bringing in partners like Bitget will help introduce global expertise while advancing local capabilities and the broader financial ecosystem.

1 minutes ago

ETF issuer Roundhill will launch an optical module stock ETF tomorrow, covering LITE and the A-share stock nicknamed "Yi Zhongtian".

Renowned investment management firm Roundhill will launch an optical module stock ETF tomorrow. According to its official website, the ETF is named LYTE. Its major holdings include Lumentum Holdings Inc (LITE) at 15.42% and Coherent Corp (COHR) at 15.23%, while Chinese A-share companies Sunway Communication, China Information Technology, and Topband account for 14.59%, 14.22%, and 7.9% of the portfolio respectively.

1 minutes ago

Jiang Zhuo'er: The bottom price of Bitcoin in this cycle is expected to hit $44,000 at the end of October.

Jiang Zhuoer, founder of Leibit Mining Pool (B.TOP), has projected the bottom of the current Bitcoin bear market by analyzing the previous three Bitcoin bull-bear cycles. "Based on historical data fitting, the drawdown ratios of the four cycles are 86.9%, 84.1%, 77.6%, and 65.1% (current cycle forecast), corresponding to a BTC price of $44,016, with the expected occurrence date being October 31," he stated.

1 minutes ago