BlockBeats News, August 7th, SharpLink co-founder Joseph Chalom expressed his opposition to the Ethereum EIP-8361 proposal for "Tapered Issuance Burn." He pointed out that the proposal would significantly reduce network staking rewards. As the Ethereum staking ratio increases, validator rewards will be gradually burned until staking reaches about half of the total supply, at which point rewards will drop to zero. Validators will then only be able to rely on transaction fees, currently accounting for about 15%, to sustain their operations. This would weaken the DeFi ecosystem, causing ETH to lose its inherent revenue advantage over Bitcoin, increasing on-chain capital costs, and eliminating some small and medium-sized staking operators.

Chalom believes that the timing of the proposal is particularly unfavorable as Ethereum is currently experiencing widespread institutional adoption. This includes Robinhood building a new chain on the Ethereum 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 SharpLink agrees that ETH should become scarcer over time but advocates achieving this goal through the existing base fee burn mechanism, opposing any fundamental changes to the protocol's economic foundation at this stage.

EIP-8361 proposes gradually increasing the proportion of validator rewards burned as the ETH staking ratio rises, eventually reducing the net issuance reward at the consensus layer to zero when staking reaches about 50% of the supply to eliminate further staking incentives.