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DeFi leaders oppose ETH proposal to cut staking rewards, fearing harm to credit markets and staker yields.

Market News
05 Aug 2026
AMBCrypto
View Source
Bearish
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A proposal to remove Ethereum staking rewards if staked ETH exceeds half of circulating supply faces strong opposition from DeFi leaders like Aave CEO Stani Kulechov. Critics argue the plan would disrupt institutional adoption, reduce yield predictability for solo stakers, and damage DeFi borrowing strategies, potentially causing capital flight to other networks. While some see reducing issuance as necessary, many believe cutting rewards to zero would hurt ETH's viability as a store of value and decentralization. The proposal's future is uncertain amid broad DeFi resistance.

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