Crypto
Ethereum Staking Cap Proposal Sparks Opposition from Aave Founder
A new proposal to cap Ethereum staking incentives at 50% of supply has been met with opposition from Aave founder Stani Kulechov and others.
The EIP-8361 proposal, titled Tapered Issuance Burn, was submitted by Jerome De Tychey and other developers, who argue that Ethereum's current issuance curve continues to incentivize staking even as the percentage of ETH locked in validators rises.
They warn that if the trend continues, more than 70 million ETH could be staked by January 2028, representing over 55% of the total supply under their worst-case projection.
Kulechov stated that the proposal is harmful to the network and would make Ethereum staking yields unpredictable and potentially uneconomical for many participants.