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Ethereum’s much-hated staking ‘tax’ may already be obsolete

Ethereum’s latest “funding crisis” has triggered a fierce debate over whether to tax staking rewards or to pursue funding from large ETH holders for new organizations like EthLabs.

Ethereum is running out of money, according to former insiders.

The warning has sparked one of the fiercest Ethereum governance debates in months: should the network fund developers by taxing staking rewards, or just rely on wealthy Ether holders to bankroll its ecosystem?

At the center of the debate is a controversial proposal from Kleros co-founder Clément Lesaege. He suggested redirecting up to 10% of validator rewards to ecosystem funding through a protocol-level mechanism called Validator Redirected Revenue.

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