ChainThink reports that on August 7, Joseph Chalom, CEO of Sharplink and former Head of Digital Assets Strategy at BlackRock, posted an article opposing the EIP-8363 "decreasing issuance burn" proposal currently under discussion by the Ethereum community, arguing that its timing is inappropriate and could harm DeFi while diminishing ETH’s appeal to institutional capital.
Chalom stated that the proposal will gradually reduce validators' staking rewards by approximately 2.75% until staking reaches about half of the total supply, at which point rewards will be eliminated; at that stage, validators will primarily rely on transaction tips to sustain operations, with transaction tips currently accounting for about 15% of current rewards.
He believes that staking yields serve as the benchmark interest rate for on-chain lending, and reducing yields could increase the cost of on-chain capital and compress the collateral value of liquid staking tokens, which have a total value locked (TVL) of approximately $35 billion.
Meanwhile, native ETH yield is its core differentiator from BTC, and related adjustments may impact institutional capital inflows into ETPs, DATs, and similar products.
Chalom also stated that the issuance rewards will go to node operators, client development teams, and ecosystem builders, rather than simply "leaking."
He expressed support for Ethereum's long-term deflationary goal but argued that the existing EIP-1559 base fee burning mechanism already achieves this direction, and EIP-8363 represents "solving the problem the wrong way."