The decision distinguishes standard Ethereum staking from the more speculative restaking as a proposal to limit validator rewards creates a rift in the staking community.
By Shaurya Malwa|Edited by Jamie Crawley Aug 7, 2026, 8:01 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Ethereum staking token weETH no longer includes restaking exposure. (Pixabay)SummaryShow- Ether.fi has detached restaking from its primary token, weETH, simplifying it to a basic Ethereum staking token while creating a new token, weETHs, for restaking.
- This modification allows users to select between standard staking rewards with weETH and the more lucrative, higher-risk restaking rewards with weETHs.
- Ether.fi’s adjustment occurs amid a proposal from Ethereum researchers suggesting a cap on staking rewards, which Ether.fi’s founder claims could disadvantage smaller stakers and staking products.
Ether.fi, a major player in the staking sector with approximately $3.55 billion in customer deposits, has removed restaking from weETH, its flagship product, leaving it as a straightforward token that generates typical Ethereum staking rewards.
Those seeking enhanced yield will now need to acquire an additional token, weETHs.
Staking involves locking ether to support the Ethereum network and receiving compensation, while restaking utilizes that same ether for additional rewards by securing other services.
This dual approach increases the risk of penalties, as any failure in either staking or restaking could result in a loss of part of the deposit.
For current holders:
— ether.fi (@ether_fi) August 6, 2026
You now have a clearer choice between basic staking exposure and additional restaking exposure depending on your goals.
For new users:
This simply makes the EtherFi stack easier to understand.
Previously, holders of weETH faced both risk profiles regardless of their preference. Now, they can opt for weETH for standard staking or weETHs for the added risk and rewards of restaking.
Ether.fi has garnered around $223 million in annual fees and approximately $51 million in annual revenue. In the second quarter, the company reported $41 million in gross revenue and nearly $10 million in earnings after accounting for rewards and costs, with just $30,000 returned to ETHFI holders through buybacks.
This change comes as discussions regarding Ethereum's staking economics intensify.
A group of Ethereum researchers, including one from the Ethereum Foundation, recently proposed that staking rewards be eliminated once 50% of all ether is staked. Currently, the rewards persist regardless of the amount staked, which they argue leads to centralization with a few large custodians.
Their proposal would gradually reduce rewards until they vanish completely around the point where 60 million ether are staked, with about a third currently in stake.
Ether.fi founder Mike Silagadze criticized the proposal, asserting that it would marginalize smaller stakers and undermine products reliant on staking rewards, including his own.
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Why it matters:
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