SharpLink CEO opposes EIP-8363, saying it could weaken ETH's core advantage over Bitcoin

Odaily News: SharpLink CEO Joseph Chalom has officially opposed Ethereum Improvement Proposal EIP-8363, stating that if passed, it could weaken the DeFi ecosystem, limit institutional interest in Ethereum, and erase a key advantage ETH holds over Bitcoin.

EIP-8363, also known as "Tapered Issuance Burn," is a mechanism that gradually increases the proportion of consensus-layer validator rewards that are burned as the ETH staking ratio rises. When approximately 50% of the ETH supply is staked, the reward burn ratio will reach 100%, meaning issuance income drops to zero. If approved, the mechanism would be implemented gradually over a period of about 18 months.

Since being introduced earlier this week, the proposal has sparked significant controversy. Supporters argue that it could limit the scale of ETH staking through a market-based approach while reducing the dilution problem faced by non-stakers. The proposal's authors include Ethereum Foundation researcher Justin Drake, EthCC founder Jérôme de Tychey, and others.

However, critics argue that the mechanism could disproportionately harm independent stakers and weaken Ethereum's security. Chalom stated that the proposal's authors are all serious researchers and long-term Ethereum supporters, but "well-intentioned people can also be wrong."