This move separates ordinary Ethereum staking from the higher-risk restaking exposure, with weETH now only earning ordinary Ethereum staking rewards. Users hoping for additional yield now need to hold a second token, weETHs. This separation comes as Ethereum's staking economics are sparking debate, with researchers proposing to stop paying staking rewards when the amount staked reaches half of Ethereum's total supply, to avoid Ethereum being concentrated in the hands of a few large custodians. Ether.fi founder Mike Silagadze is critical of this proposal, arguing that it would squeeze out small stakers and weaken products built on staking rewards.