Ethereum developers are debating new privacy-focused token standards, including the proposed pERC-20, as of June 10, 2026. This shift reflects a move away from the “public bank account” model where transaction histories are visible onchain. Ethereum co-founder Vitalik Buterin has long advocated for these technologies, even donating approximately $500,000 to the legal defenses of Tornado Cash co-founders.
The latest proposal, pERC-20, would allow users to hold and transfer tokens without publicly revealing their balances or counterparties. Unlike traditional ERC-20 tokens, assets under this standard would exist as encrypted cryptographic “notes,” similar to digital cash. This structure ensures transactions remain private while still allowing the network to verify that no unauthorized changes occurred.
The total supply of pERC-20 tokens would remain publicly visible to ensure that new tokens are not being secretly created. This development is gaining traction as utility shifts dictate 2026 blockchain trends. By incorporating a cryptographic blacklist, the standard also aims to allow issuers to freeze specific notes, balancing privacy with compliance needs.
Overcoming the user experience hurdle
Eli Ben-Sasson, the co-founder of StarkWare, highlighted that the primary obstacle for privacy today is not the math, but the user experience (UX). Historically, privacy tools have suffered from slow synchronization and cumbersome transaction flows. Ben-Sasson noted that if the UX is poor, few people use the system, which ultimately reduces the anonymity provided to participants.
To address a broader range of needs, Starknet launched the STRK20 framework on June 9, 2026. This framework extends confidentiality beyond simple transfers into decentralized finance activities like lending and staking. While pERC-20 focuses on shielding balances, STRK20 aims to provide a unified privacy layer for managing multiple assets and interacting with decentralized applications.
StarkWare’s approach also incorporates post-quantum secure cryptography to prepare for future advances in computing. Damian Chen, VP of Growth at the Starknet Foundation, described this framework as “practical privacy.” Such advancements are critical as the CFTC prepares to oversee the maturing digital asset market, where institutional users require data confidentiality.
Protocol level changes and the Hegota upgrade
The Ethereum Foundation is also working to embed privacy deeper into the network through its “Privacy Cluster” team. Announced on October 8, 2025, this group of 47 engineers, researchers, and cryptographers is tasked with researching protocol-level integrations. The Foundation has stated that without strong privacy, Ethereum risks becoming a “backbone of global surveillance.”
The EIP-8182 proposal and zero-knowledge future
Another significant initiative is EIP-8182, a draft proposal published on March 3, 2026, by developer Tom Lehman. This proposal aims to create a shared “shielded pool” for ETH and compatible tokens directly at the protocol level. Reports suggest EIP-8182 is targeting Ethereum’s Hegota upgrade, which is expected to arrive in the second half of 2026.
These efforts align with a broader vision for the network’s evolution over the next several years. Joseph Lubin, CEO of ConsenSys, stated on June 10, 2026, that Ethereum might transition into a protocol entirely based on zero-knowledge proofs within three to five years. This would mark a fundamental shift in how the blockchain handles transaction data and user confidentiality.
While pERC-20 must still undergo a lengthy review process before seeing widespread adoption, its emergence alongside STRK20 signals a clear technical shift. Developers are no longer viewing privacy as an optional feature for niche users. Instead, they are positioning it as a foundational layer necessary for the next stage of global blockchain adoption.