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SharpLink opposes Ethereum plan to cut staking rewards, warning it could hurt institutional appeal and DeFi costs.

Market News
07 Aug 2026
Crypto news
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Bearish
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SharpLink CEO Joseph Chalom opposes Ethereum's proposed EIP-8361 plan to gradually eliminate issuance-based staking rewards as more ETH is staked, arguing it would weaken Ethereum's economic advantages and institutional appeal. The proposal would reduce validator issuance rewards to zero near a 50% staking ratio, potentially increasing capital costs and pushing DeFi collateral to yield-producing assets. SharpLink, which stakes nearly all its ETH and has earned over 18,000 ETH in rewards, supports controlling issuance but prefers relying on Ethereum's existing base-fee burn mechanism. The debate continues as the proposal remains a draft and could impact Ethereum's staking ecosystem and DeFi markets if adopted.

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