Aave's Kulechov backs Sharplink in opposing Ethereum staking-burn proposal
Aave founder Stani Kulechov and Sharplink have opposed EIP-8363, a draft Ethereum proposal that would burn validator rewards down to nothing as more ETH is staked.
The two DeFi stakeholders are standing against a group of Ethereum Foundation researchers over how the network should pay the people who secure it.
Who is against the Tapered Issuance Burn?
The proposal, named “Tapered Issuance Burn,” that calls for a system where the network would destroy a growing share of rewards given to validators, was posted on GitHub on August 4, 2026.
When staking reaches about 60.25 million ETH, which is close to half of all supply, the burn would hit 100%, and new-issuance yield would disappear. At that point, validators would only earn from transaction tips and maximum extractable value (MEV).
Currently, about 41.5 million ETH is staked, which is roughly 34% of supply. If EIP-8363 were to activate now, validator income would drop from roughly 2.68% to about 1.19%, representing a cut of about 55%.
The proposal is still a draft and has not been accepted into any upgrade. Cryptopolitan’s earlier reporting states that the authors suggested the new system be introduced over an 18-month period to soften the blow.
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