Aave Founder Warns EIP-8361 Could Render ETH Staking Unprofitable

Stani Kulechov argues EIP-8361 risks zero staking yields if ETH stake exceeds 50% supply, threatening DeFi lending viability and asset appeal.

Woofun AI reports that Stani Kulechov, founder of Aave, criticized the newly submitted EIP-8361 proposal, titled "Tapered Issuance Burn." He argued that the mechanism fails to achieve its goals and harms Ethereum by potentially reducing staking rewards to 0% once staked ETH exceeds 50% of total supply. This unpredictability could disadvantage institutional and individual stakers, rendering ETH lending strategies unusable and undermining DeFi yield applications. Kulechov suggested this might drive holders toward stablecoins, reducing ETH’s asset viability, and urged that the proposal not proceed, stating "Ethereum should not be punished for its development." The proposal was jointly submitted by Jerome de Tychey and other developers.