A new proposal on Ethereum's research forum suggests allowing validators to redirect 0% to 10% of their staking rewards to fund ecosystem infrastructure and public goods. If a majority of validators support a non-zero redirect rate, the contribution becomes mandatory for all validators. Funds would be distributed based on validators' preferences via a 'splitter' contract. Proponents argue this could channel tens of thousands of ETH annually to underfunded projects, addressing the 'free-rider' problem where many benefit from shared infrastructure but few pay. Critics warn of risks including validator cartelization, misalignment between staking operators and delegators, and the possibility of reducing issuance instead. The proposal is a starting point for discussion, with no formal voting process yet.

Key facts

• Validators can redirect 0-10% of staking rewards to fund Ethereum ecosystem projects.
• Mandatory if majority supports a non-zero rate; funds distributed via splitter contract.
• At 5-10% redirect, 50,000-70,000 ETH yearly (~$120 million) could be raised.
• Critics cite risks of validator cartelization and delegator-operator misalignment.
• Proposal aims to solve free-rider problem in funding public goods.

KeyAudit data perspective