SharpLink Opposes Plan to Cut Staking Rewards for Ethereum Validators

SharpLink's CEO Joseph Chalom has come out against an Ethereum proposal that could eliminate issuance-based staking rewards. According to Chalom, this change would weaken ETH's appeal to institutions and increase capital costs across decentralized finance.

The proposed plan, known as EIP-8361, or Tapered Issuance Burn, aims to gradually destroy part of the rewards paid to validators as more ETH enters staking. This could leave validators heavily dependent on transaction priority fees and maximal extractable value, rather than newly issued ETH.

SharpLink, which has earned over 18,000 ETH in cumulative rewards from its nearly all-ETH stake, opposes this change. Chalom argues that Ethereum's native yield gives it an edge over Bitcoin, which does not produce protocol-native returns for holders.