Ethereum Foundation researcher proposes a validator income redistribution plan, aiming to allow staking rewards to be redirected

Devansh Mehta, a researcher at the Ethereum Foundation, proposed a Validator Revenue Redistribution (VRR) scheme at the EthCC conference. It aims to allow validators to signal on the consensus layer and autonomously decide to redirect a certain percentage of their staking rewards to designated smart contracts, rather than withdrawing all to personal wallets. The recipients can be public goods funding platforms like Gitcoin and Octant, security auditing agencies, or core protocol research teams.

The scheme involves two changes at the execution layer: signaling the redirection ratio by validators and the logical implementation of fund allocation to the designated contracts.