Mike Silagadze, CEO of ether.fi, has put up a $1 million bet that EIP-8363, a proposal to burn Ethereum staking rewards once the staking ratio exceeds 50%, would centralize staking power rather than distribute it. He argues that the yield compression caused by this measure would disproportionately affect small liquid staking token (LST) providers over large players like Lido, which already commands 63% of the LST market with approximately $28.2 billion in stETH. LDO, Lido’s governance token, fell roughly 15%, while ether.fi’s ETHFI dropped about 12% in response to the proposal. Aave founder Stani Kulechov has also publicly opposed EIP-8363, and Ethereum core developers were scheduled to discuss the proposal around August 8.
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