Proposal suggests converting up to 10% of ETH validator rewards to ecosystem fund

A new governance proposal has been submitted on the Ethereum Research forum to use a portion of validator staking rewards for an ecosystem support fund, CoinDesk reported. The proposal outlines a mechanism to redistribute validator revenue, allowing validators to convert between 0% and 10% of their staking rewards into the fund. The proposer argued that the Ethereum ecosystem currently suffers from an imbalance where numerous projects benefit from core infrastructure—such as research, development tools, and security—while a small number of entities bear the financial burden. According to the proposal, Ethereum validators receive approximately 700,000 ETH in staking rewards annually. Diverting 5% to 10% of these rewards could generate 50,000 to 70,000 ETH per year for the ecosystem fund, equivalent to about $120 million at current prices.