{
  "id": 8068,
  "title": "EIP-8068: Neutral effective balance design",
  "status": "Draft",
  "type": "Standards Track",
  "category": "Core",
  "summary": "Makes staking treat 'skimmed' and 'compounding' validators the same by tweaking effective balance rules, so operators can consolidate without losing yield.",
  "impacts": [
    "No direct effect; staking reward accounting stays inside the consensus layer and user transactions stay unchanged.",
    "No app-facing protocol change; validator consolidation does not alter JSON-RPC, gas rules, or transaction semantics.",
    "Deposit/withdrawal handling unchanged; no mandatory code updates.",
    "The actual yield becomes in line with existing interpretations of what validators earn.",
    "No rollup/L2 logic changes identified; this is an L1 consensus-layer adjustment to validator accounting only.",
    "Compounding 0x02 validators get the same yield as 0x01 validators, which they already believed that they did. No longer possible to game partial withdrawals",
    "Must implement neutral EB math, ±0.5/±0.25 hysteresis, and one-time temporary_upward_threshold after withdrawals; moderate integration effort.",
    "No execution-layer work identified; EB and hysteresis are handled in consensus specs, so EL code can remain unchanged.",
    "Equalizes rewards for 0x01 and 0x02 validators.",
    "Improves capital efficiency for compounding validators.",
    "Removes hysteresis-gaming opportunities.",
    "Supports stake consolidation toward fast finality."
  ],
  "discussion_url": "https://ethereum-magicians.org/t/eip-8068-neutral-effective-balance-design/26015",
  "source_markdown_url": "https://github.com/ethereum/EIPs/blob/master/EIPS/eip-8068.md",
  "canonical_url": "/latest/eips/8068.json",
  "markdown_url": "/latest/eips/8068.md",
  "citations": [
    {
      "recordId": "eip-8068",
      "artifactPath": "normalized/8068.json",
      "url": "/records/proposal/eip-8068/normalized/8068.json",
      "label": "EIP-8068: Neutral effective balance design",
      "snippet": "Makes staking treat 'skimmed' and 'compounding' validators the same by tweaking effective balance rules, so operators can consolidate without losing yield."
    }
  ]
}