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 on consensus layer changes), Jerome introduced EIP-8363, a proposal aimed at introducing a decreasing burn mechanism to Ethereum. Once the staking ratio exceeds 50%, validator staking incentives would drop to 0.

However, other participants expressed concerns about the proposal's potential negative impact on small validator nodes and the risk of centralization, while also questioning the actual returns 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 the other authors of the proposal were also advised to respond to all comments on the EIP thread on the Eth Magicians forum.

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

it sparked extensive community controversy regarding timing, impact on staking/DeFi, and centralization risks. SharpLink CEO Joseph Chalom, Aave founder Stani Kulechov, Ether.fi founder Mike Silagadze, and other Ethereum ecosystem companies all publicly opposed it.