Ethereum's Native Yield Heads for Zero Under EIP-8363 Proposal
The Ethereum Improvement Proposal (EIP) 8363 is set to put native yield on a path to zero, affecting not only stakers but also SharpLink's $125 million treasury. This proposal, part of the upcoming Hegotá upgrade, introduces an ever-increasing burn factor as the staked pool grows. The trigger point for this change is when staking reaches 60.25 million ETH.
Currently, the staking ratio stands at around 34.13%, far from the threshold of 49.5% that would initiate the burn factor increase. However, the proposal's impact will be felt even before reaching this milestone, as consensus rewards begin compressing during the climb.
SharpLink, a publicly traded company with an ETH treasury, has marketed its stock on 'yield generation above native staking rates.' However, EIP-8363 targets net consensus yield specifically, which means SharpLink's strategy components of staking, trading, and liquidity provision will be affected.