EIP-8361 proposes tapered ETH issuance tied to staking

There are only opposing opinions in both the proposal and the quotes on X. I don’t think I’ve ever seen a proposal like this before.

It suggests adjusting the amount of ETH emitted based on the ratio of staked ETH, and setting it to zero once it exceeds 50%. The stated intent is to address value dilution from perpetual issuance and alleviate security concerns arising from a rising staking ratio.

The aim itself is good, but because this proposal would make ETH staking yields hard to predict, it would deter institutional participation and significantly reduce the appeal for retail stakers, so all the feedback is negative. It’s also hard to understand why you’d add unpredictability to yields at a time when fixed-rate products are coming to the fore, and the lack of any explanation for why it should drop to zero at 50% makes the proposal look even flimsier.

https://x.com/jdetychey/status/2084638787301204215
https://ethereum-magicians.org/t/eip-8361-tapered-issuance-burn/29263/15