Ethereum EIP-8222 Seeks to Separate Staking Deposits and Withdrawals

Ethereum improvement proposal EIP-8222 plans to use STARK-based cryptography to separate staking deposits from withdrawals and re-anonymize validators to reduce the traceability of validator activity. According to ChainCatcher, about one-third of ETH is currently staked. Thibault Dubuis, head of staking and decentralized finance products at Sygnum Bank, said current deposit addresses, validators, and withdrawal credentials create a visible link that can reveal an institution's position size, entry time, and staking strategy. The proposal is still under discussion and has no deployment timeline, and its design may include fixed deposit denominations and asset-claim waiting periods that could increase execution costs, delay processes, and add compliance work for institutional users.