Aave founder Stani Kulechov and ether.fi chief executive Mike Silagadze have come out against the proposal to burn a rising share of Ethereum validator rewards, joining a list of DeFi founders, solo stakers and researchers who have spent two days arguing against it on X and on the Ethereum Magicians forum. Core developers take it up on Thursday.
The fight puts Ethereum's largest DeFi protocols and staking businesses against a group of researchers who want the issuance curve capped before the staked share of ETH goes any higher, and it is being conducted in a 48-hour window created by a fork deadline. The Ethereum Magicians thread has drawn about 40 posts in two days.
The proposal would remove the incentive to stake beyond half of all ETH by burning a fraction of validator rewards that climbs with the staking ratio, reaching 100% at a saturation balance of 60.25 million ETH. Applied in full at the fork, it would cut net consensus yield from about 2.6% to 1.2% at today's staking level, which is why the authors phase it in over 18 months. The original proposal was posted on Aug. 4, roughly 48 hours before the deadline to propose EIPs for Hegotá, the upgrade after Glamsterdam.
Ethereum has 41.5 million ETH staked, or 34.07% of supply, across 895,293 active validators, earning a 2.65% APR, according to validatorqueue.com. Another 2,488,005 ETH is waiting to get in, a 43-day queue. Liquid staking tokens hold 15.04 million ETH worth $28.2 billion, with Lido's stETH accounting for 62.7% of that, DefiLlama shows.
