A new proposal by Ethereum contributor Clément Lesaege would allow validators to redirect up to 10% of staking rewards to fund ecosystem development. The “Validator Redirected Revenue” framework requires majority validator support and has reopened debate over sustainable funding for Ethereum’s public goods, amid concerns about shrinking resources for core development.
A new funding proposal seeks to address Ethereum’s coordination problem for financing public infrastructure. The framework, introduced by contributor Clément Lesaege, is called “Validator Redirected Revenue.”
It would let validators signal how much of their rewards to divert and which recipients should get the funds. If over 51% of validators support a rate above zero, that selected level would apply to all, capped at 10%.
At current staking levels, a 5% redirect would channel roughly 38,000 ETH annually into development. A 10% redirect would raise that figure to approximately 76,000 ETH per year.
Lesaege identified cartel formation as the most serious risk, where a majority could vote to redirect funds back to themselves. He argued such an attack was unlikely due to reputational and price consequences.
Fellow developer Micah Zoltu questioned the incentives, writing, “I’m not aware of any solution to this.” Lesaege responded that existing cartel risks on Bitcoin and Ethereum had never materialized.
Some community members questioned whether protocol-level funding was necessary. Pseudonymous developer señor doggo argued that funding should compete voluntarily instead of becoming part of the protocol.
Others supported voluntary contributions. DeFi builder S. More said they would donate part of their staking yield, but suggested donations should remain optional.
The debate comes amid warnings about future funding pressure for Ethereum’s core development. Former Ethereum Foundation insider Trent Van Epps recently noted that existing support programs are expiring.
