Kulechov Slams EIP-8361 Proposal: 'ETH Less Viable As An Asset'

Aave founder Stani Kulechov is speaking out against Ethereum's EIP-8361 proposal, which aims to change how staking rewards are delivered. The plan would cut consensus layer issuance as more ETH is staked and burn all those rewards once the amount of staked ETH hits around 50% of the total supply.

Kulechov argues that this approach would not address Ethereum's biggest needs and could make ETH less attractive as an asset. He believes the protocol should focus on core challenges such as privacy, scalability, and security, rather than getting distracted by issues like staking rewards.

Kulechov also warns that cutting staking rewards would hurt several parts of the Ethereum ecosystem, including institutional investors and decentralized finance (DeFi) platforms. He points out that predictable staking rewards are essential for attracting large-scale participants, and unpredictable yields could make ETH less competitive with other networks.