Lido Contributors Urge Broader Review of EIP-8363 Before Hegota Upgrade

Lido contributors have urged the Ethereum community to conduct a broader review of EIP-8363 before considering it for CFI in the Hegota upgrade. They are not opposed to changes in Ethereum's staking or issuance model but want the second- and third-order effects to be better understood.

EIP-8363 proposes reducing staking rewards to zero once staking participation reaches 50% of total ETH supply. The contributors stated that they are concerned about moving toward concrete monetary policy update proposals before exploring the broad consequences and second- and third-order effects, especially the impact on validator-set composition, resulting stake distribution, DeFi, and the long-term security and value of the network.

The contributors described efforts to engage constructively in the issuance discussion. They stated that any issuance change would first go through an effort to build broader alignment around the main properties of the proposed update, including the problem being solved, the objectives being optimized for, acceptable trade-offs, and assessment of impacts on validators, DeFi, solo stakers, and staking-market structure.

The contributors hold that EIP-8363 should not be seriously considered for CFI in Hegota. They stated it should be re-approached from a broader base with clear objectives, explicit trade-offs, and well-understood consequences.