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Alvin Kan
@alvin_kan
Onchain is the new Online
Joined September 2010
1.3K Following    8.8K Followers
Lots of controversy on this EIP today. The issue is this change may not effectively lead to the intended objectives (at least the community's not convinced), while the second-order effects are not addressed or discussed sufficiently. Some concerns which i see are emerging in community discussions: - Would lower staking rewards push solo stakers out first, while large institutional operators remain viable through MEV revenue, execution-layer income and economies of scale, potentially increasing validator concentration? - How would lower issuance affect the yields and DeFi pricing of LSTs such as stETH and weETH, including their use in lending, yield products and restaking markets? - Is there sufficient empirical justification for the proposed 50% staking threshold and the linear burn curve, particularly as ETH ETFs, institutional staking and onchain credit markets continue to develop? I personally don't think this will effectively protect solo stakers, nor will it really reduce inflation that much. Ethereum has developed into a complex economy, and the potential second order effects may far outweigh the realistic achievement of intended objectives.
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🚨 New EIP: Tapered Issuance Burn We just submitted an EIP to ethereum/EIPs: a minimal, market-driven fix to Ethereum's issuance policy removing the incentive for stake growth beyond 50% of ETH supply. EIP-8361 by @pintail_xyz, @jdetychey, @dapplion, @pa7x1, @ladislaus0x & @drakefjustin 🧵
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