Ethereum Issuance Policy Reform Stirs Debate Over Decentralization

The Ethereum Foundation's Protocol Cluster has proposed an initiative to reform Ethereum's issuance policy. This proposal aims to address the structural contradiction between staking yields and the dilution of assets held by non-stakers under the current mechanism.

According to Woofun AI, the current mechanism compensates validators through new issuance, exposing ETH holders who do not participate in staking to the risk of share dilution. Reducing issuance could mitigate dilution, but it might jeopardize the viability of small-scale validators, affecting the network's decentralization.

The proposal involves setting a threshold of 60.25 million and adjusting rewards during the transition period. This design allows users with different staking levels to receive differentiated initial returns during the transition period.