Ethereum could lose its key advantage over Bitcoin.
EIP-8363 is currently under consideration. This is a draft proposal for changes to the Ethereum network rules, published on August 4 by Ethereum Foundation researchers.
• The document proposes burning an increasing portion of validator rewards (network participants who maintain and receive a reward for doing so) as the share of ETH staked grows.
• Upon reaching approximately 50% of the staked ETH (60.25 million coins), the rewards for issuing new coins will be completely reset to zero, leaving only fees and MEV (meaning additional value derived from the order of transactions in a block).
• SharpLink CEO Joseph Chalom publicly opposed the proposal: according to him, ETH staking yield serves as a base rate for DeFi, and its reduction will make borrowed capital more expensive and harm liquidity.
• Native yield (the income generated by the asset itself without any additional investor action) is one of ETH's main advantages over Bitcoin for institutions, and its disappearance could prompt some to withdraw ETH from staking.
• Aave founder Stani Kuleshov also joined SharpLink.
• The timing for such a change appears unfortunate: institutional interest in Ethereum is only just gaining momentum. turnover
Messari analysts estimate the chances of the offer being accepted as low.
EIP-8363 is currently under consideration. This is a draft proposal for changes to the Ethereum network rules, published on August 4 by Ethereum Foundation researchers.
• The document proposes burning an increasing portion of validator rewards (network participants who maintain and receive a reward for doing so) as the share of ETH staked grows.
• Upon reaching approximately 50% of the staked ETH (60.25 million coins), the rewards for issuing new coins will be completely reset to zero, leaving only fees and MEV (meaning additional value derived from the order of transactions in a block).
• SharpLink CEO Joseph Chalom publicly opposed the proposal: according to him, ETH staking yield serves as a base rate for DeFi, and its reduction will make borrowed capital more expensive and harm liquidity.
• Native yield (the income generated by the asset itself without any additional investor action) is one of ETH's main advantages over Bitcoin for institutions, and its disappearance could prompt some to withdraw ETH from staking.
• Aave founder Stani Kuleshov also joined SharpLink.
• The timing for such a change appears unfortunate: institutional interest in Ethereum is only just gaining momentum. turnover
Messari analysts estimate the chances of the offer being accepted as low.
