Ethereum(ETH) validators are overwhelmingly rejecting EIP-8361, an inflation-focused proposal to cap staking rewards, with 99.7% of 83,000 staked ETH signaling “No” in a community sentiment c
Ethereum(ETH) validators are overwhelmingly rejecting EIP-8361, an inflation-focused proposal to cap staking rewards, with 99.7% of 83,000 staked ETH signaling “No” in a community sentiment check.
- Validators representing 99.7% of 83,000 staked ETH in the ETHVA check are signaling against EIP-8361.
- The proposal would reduce staking rewards and set them at zero if Ethereum’s staking ratio rises above 50%.
- Critics led by Aave argue the plan could hurt ETH credit markets and push DeFi activity toward rival chains.
The check is non-binding. ETHVA data nevertheless provide a gauge of opposition among participating stakeholders, and the 99.7% rejection suggests EIP-8361 could struggle to gain enough support to advance.
EIP-8361 remains in draft form, so it has not yet cleared the process required for inclusion in the Hegota network upgrade. A Proposal for Inclusion, or PFI, review would require community and developer evaluation, including the proposal’s economic effects. Approval is far from assured.
The proposal uses a tapered issuance model that would reduce staking rewards as Ethereum’s staking ratio rises, with rewards falling to zero if more than 50% of ETH is staked.
Also Read:OpenAI's First Device Takes The Shape Of A $300 Doughnut From Legendary Jony Ive
Aave has become one of the proposal’s most prominent critics, arguing that lower staking rewards could damage ETH credit markets and encourage DeFi activity to move to other chains. Aave CEO Stani Kulechov said the proposal makes ETH less viable. He also said it would not help solo stakers.
Kulechov widened his criticism to the Ethereum Foundation, where two of the proposal’s authors work.
“The EF’s ivory tower academic approach will not solve those challenges. It’s disconnected from the builders in the trenches who choose to build on Ethereum every day. We should not take them for granted.”
Rhett Shipp, CEO of Avant Protocol, separately said the proposal showed a lack of focus on changes that would have greater impact.
The opposition leaves EIP-8361 facing a difficult route toward Hegota, while some community members are urging the Ethereum Foundation to address inflation without reducing staking rewards.
Santiment data cited in the report showed Ethereum market sentiment moving slightly into negative territory over the previous two days, while ETH remained below $2,000. ETH is also not currently deflationary, keeping inflation and its store-of-value case at the center of the dispute.
Read Next:Wintermute Moves Beyond Crypto With $10B In Daily Trading Volume
