Overview
- Joseph Chalom, SharpLink’s CEO, publicly voiced opposition on Friday, August 7, 2026, to a draft ‘Tapered Issuance Burn’ proposal and referenced it with an incorrect EIP number while describing the same mechanism.
- The proposal, authored by Ethereum researchers, would gradually burn consensus-layer staking issuance as total staked ETH rises and reach full burn near a roughly 60.25 million ETH staking threshold with an about 18-month transition.
- Critics say the change would eliminate the majority of validator revenue that now comes from issuance, cut native staking yields that set benchmarks across DeFi, and raise effective capital costs for liquid staking providers.
- Proposal authors defend the plan as a tool to curb inflation and limit staking concentration and state the existing issuance curve would still yield roughly 1.5% even with very high staking levels.
- EIP-8361 remains a draft and is not scheduled for a network upgrade; its fate is uncertain given active pushback, tight upgrade windows, and possible second-order effects such as reduced DeFi activity that would also lower fee burns.