**[SharpLink Co-Founder Opposes Ethereum EIP-8361 Proposal, Citing DeFi Weakening and Poor Timing]** BlockBeats News, August 7 — SharpLink co-founder Joseph Chalom published a statement opposing Ethereum's EIP-8361 proposal, "Tapered Issuance Burn." He pointed out that the proposal would significantly reduce staking rewards on the network. As Ethereum's staking ratio increases, validator rewards would be gradually burned until staking reaches approximately half of the total supply, at which point rewards would drop to zero. Validators would then have to rely solely on transaction fees, which currently account for about 15%, to sustain operations. This would weaken the DeFi ecosystem and strip ETH of its native yield advantage over Bitcoin, increasing the cost of on-chain capital and forcing some small- to medium-sized staking operators out of the market. Chalom argued that the timing of the proposal is particularly unfavorable, as Ethereum is currently experiencing large-scale institutional adoption. Examples include Robinhood building a new chain on Ethereum's Layer 2 network, BlackRock tokenizing its money market fund shares on-chain, and BNY Mellon introducing staking services to its custody platform through a partnership with Galaxy Digital. He stated that while SharpLink agrees ETH should become more scarce over time, this goal should be achieved through the existing base fee burn mechanism, rather than making fundamental changes to the protocol's economic foundation at this stage. EIP-8361 proposes gradually increasing the burn rate of validator rewards as the ETH staking ratio rises, ultimately reducing net issuance rewards on the consensus layer to zero when staking reaches approximately 50% of the supply, thereby eliminating incentives for further staking. [Original Link]