The Ethereum Foundation has officially submitted a proposal to limit the reward rate to 0% if half of the Ethereum supply is staked, and this proposal is drawing strong opposition from the Ethereum community. Mike Silagadze, founder of Ether.fi, pointed out that this would be harmful to decentralization, adoption, and network reputation. Steve Berryman, Head of Ethereum Business at Bitwise, also expressed concern, stating, "Institutional investors need policy certainty. Adjusting the issuance mechanism could create additional uncertainty." Stani Kulechov, founder of Aave, explained, "A decrease in Ethereum staking could affect the DeFi ecosystem because a large amount of staking derivatives has become a core component of lending and yield strategies."
