What just happened?
Staking, meaning locking up ETH to secure the network in exchange for rewards, has landed at the center of several events at once. According to The Block, the share of staked ETH has reached around 34%, and it is precisely this trend that a new proposal to change the network's economics is tied to.
We will connect three things that at first glance seem unrelated, but all revolve around staking: the new EIP-8361 proposal, Fidelity's request to add staking to its ETF, and a security patch on the Harmony network.
What does EIP-8361 propose?
According to The Block, researchers have submitted a proposal labeled EIP-8361, described as a "tapered issuance burn". It is a mechanism that would burn (irreversibly destroy) an increasing share of validator rewards as the ratio of staked ETH rises.
The logic is that the more ETH is locked in staking, the larger the portion of newly issued rewards gets burned. That would dampen the incentive to stake an ever higher share of the total supply.
An important note: an EIP (Ethereum Improvement Proposal) is a proposal, not a valid rule. Submitting a proposal does not mean it is accepted. Whether and in what form it would make it into the network is not yet known.
What does Fidelity want to do with its Ethereum ETF?
According to Cointelegraph, Fidelity has filed an amended form with the U.S. SEC (according to the Polish outlet Incrypted, it is an S-3 form) with the goal of adding staking to its spot Ethereum ETF with the ticker FETH.
The available information indicates:
| Parameter | Stated value |
|---|---|
| Share of rewards kept by the FETH fund | 85% (per Cointelegraph) |
| Payouts to investors | quarterly, in cash (per Cointelegraph) |
| Maximum share of fund assets in staking | up to 100% (per Incrypted) |
| Approximate volume of assets | around 900 million USD (per Incrypted) |
According to Incrypted, investors would receive part of the reward only after costs are covered. The exact terms, and above all whether the SEC will approve the request, are not yet confirmed.
How does Harmony fit into this?
According to The Defiant, the Harmony network released a mainnet patch in version v2026.1.1 on August 12. It was responding to a report of unauthorized creation of ONE tokens.
According to The Defiant, the patch changes two verification paths:
- a quorum check that concerned committees from before the staking epoch (pre-staking epoch),
- the cross-shard confirmation (receipt) mechanism, which could apply the same transfer more than once (so-called receipt replay).
This is a separate network and a separate event, not directly connected to what is happening around Ethereum. They are linked only by a broader theme: the security and economics of staking.
What is proven here and what is not?
The proven facts are the filings and announcements themselves: the existence of the EIP-8361 proposal, Fidelity's request with the SEC, and Harmony's release of the patch. On the other hand, the outcomes (acceptance of the EIP, approval of the ETF by the SEC) are still open.
Beware of causality. The 34% share of staked ETH and the submission of EIP-8361 are thematically related, but that does not mean one caused the other in some precise time sequence. We stick to what the sources actually state.
What to watch out for with this type of news?
With regulatory filings (like Fidelity's), it is crucial to distinguish between "filed" and "approved". With EIP-type proposals, the difference is between "proposed" and "deployed to the network". And with security patches, it is worth watching whether the team discloses the extent of any damage and a post-mortem. Charliedesk gives no recommendation on this topic about what to do with it.