SharpLink CEO Opposes EIP-8363, Says It Could Weaken ETH's Core Advantage Over Bitcoin

Odaily Planet Daily News SharpLink CEO Joseph Chalom has formally opposed Ethereum Improvement Proposal EIP-8363, stating that if approved, the proposal 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," operates on a core mechanism that gradually increases the proportion of consensus-layer validator rewards 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 phased in over approximately 18 months.

The proposal has sparked significant controversy since it was introduced earlier this week. Supporters argue that it can 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-time Ethereum supporters, but "well-intentioned people can also be wrong."