Aave Founder Criticizes EIP-8361 Over Zero Yield Risks

Stani Kulechov warns EIP-8361’s zero-yield target may centralize staking, distort DeFi pricing, and increase MEV censorship risks.

Woofun AI reports that Aave founder Stani Kulechov criticized Ethereum's EIP-8361 progressive issuance burn proposal for systemic flaws. He argued that reducing net staking yield to zero at 60.25 million ETH could accelerate centralization, as home validators exit due to fixed costs while institutional players remain. Kulechov noted that unchanged fault penalties might extend recovery periods by up to 14 times, and tax treatments could result in after-tax losses for individual operators.

He further stated that declining yields could remove the pricing anchor for DeFi lending, potentially shifting capital to stablecoins offering 4% to 5% returns. Kulechov warned that MEV's share of validator revenue might rise from 7% to nearly 30%, increasing censorship incentives. He urged authors to publish tax assessments and set a non-zero yield floor, advocating for targeted measures against centralization rather than broad yield suppression.