Ethereum’s Staking Tax May Already Be Obsolete Due To EthLabs

Former insiders warned Ethereum is running out of money, sparking a governance fight over whether to fund development by taxing staking rewards or rely on wealthy Ether holders. The flashpoint was a proposal from Kleros co-founder Clément Lesaege to redirect up to 10% of validator rewards via a protocol-level mechanism called Validator Redirected Revenue.

Lesaege said the measure could address a "coordination failure" and underfunding, while critics warned it could entrench large validators, blur operator and governance roles, and set a dangerous precedent for validator-led redistribution. The debate intensified after former Ethereum Foundation contributor Trenton Van Epps warned of a "slow-burning funding crisis" within three to nine months as older support programs dry up and Foundation spending falls.

Van Epps estimated keeping more than 10 client, research and coordination teams running costs roughly $30 million a year and said new arrangements must replace expiring programs.

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