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Aave, ether.fi leaders oppose proposal to burn Ethereum staking yields
The plan would taper net consensus yield from about 2.6% to 1.2% at current staking levels, while its phase-in is meant to soften a planned reduction in staking incentives.
Aave founder Stani Kulechov and ether.fi CEO Mike Silagadze have joined a broader wave of opposition to a proposal that would burn a growing share of Ethereum validator rewards, a mechanism recently renumbered as EIP-8363.
According to The Defiant, the argument is being carried out in a 48-hour window created by a fork deadline, with Ethereum core developers set to decide Thursday whether to consider the change for Hegotá.
The proposal is designed to remove incentives to stake beyond half of all ETH by burning validator rewards that increase with the staking ratio, reaching 100% at a saturation balance of 60.25 million ETH. If applied in full at the fork, it would cut net consensus yield from about 2.6% to 1.2% at today’s staking level, with the authors phasing it in over 18 months.
The Defiant reports that 41.5 million ETH is currently staked, or 34.07% of supply, across 895,293 active validators, with liquid staking tokens holding 15.04 million ETH valued at $28.2 billion, including Lido’s stETH at 62.7% of that total. The debate also cited concerns that lowering yields could change who stakes and create additional tax exposure tied to the transition, with one long critique posted under the EthWarrior handle.
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