EIP-8363 has been considered for removal from the Ethereum Hegota upgrade deliberation

Odaily News: At the "All Core Devs consensus call" held by the Ethereum community on August 6 (a biweekly meeting to discuss consensus-layer changes), Jerome introduced EIP-8363, a proposal aimed at introducing a decreasing burn mechanism for Ethereum. Once the staking ratio exceeds 50%, the staking incentive for validators would drop to zero.

However, other participants expressed concerns about the proposal's potential negative impact on small validator nodes and the risk of centralization. They also questioned the actual benefits for stakers and the complexity of implementation. As a result, the proposal was ultimately recommended for removal from consideration for inclusion in the Hegota upgrade. Jerome and other proposal authors were also advised to respond to all comments on the EIP thread on the Eth Magicians forum.

It is understood that EIP-8363 was submitted as a draft on August 4 in an attempt to meet the Hegota upgrade's non-core EIP submission window (deadline August 6), but it

triggered considerable controversy within the community regarding timing, its impact on staking/DeFi, and centralization risks. Public opposition came from figures across the Ethereum ecosystem, including SharpLink CEO Joseph Chalom, Aave founder Stani Kulechov, and Ether.fi founder Mike Silagadze.