SharpLink CEO Warns Ethereum Staking Proposal Could Erase Key Bitcoin Advantage

SharpLink CEO Joseph Chalom has formally opposed EIP-8363, a controversial Ethereum proposal to gradually reduce staking rewards, warning it would undermine DeFi and weaken one of ETH’s biggest competitive edges over Bitcoin.

What the Proposal Would Do

Known as “Tapered Issuance Burn,” EIP-8363 would progressively increase the burn rate on validator rewards as more ETH gets staked, eventually reaching zero issuance yield once around 50% of ETH’s supply is locked up. The change would phase in over roughly 18 months if approved.

Chalom’s Core Argument

Chalom, formerly BlackRock’s head of digital asset strategy, said staking yield currently acts as ETH’s base rate for onchain markets, supporting liquid staking tokens and lending activity. Removing it, he argued, would push real yields toward zero and drive capital elsewhere. He pushed back on the idea that Ethereum overpays for security, describing issuance as an internal transfer to the people securing and building the network rather than an external cost. Chalom called ETH’s native productivity a key institutional draw, one he said the proposal would voluntarily sacrifice at a moment when ETH is outperforming Bitcoin.

Growing Opposition

SharpLink, a major publicly traded Ethereum treasury firm backed by Consensys and Joe Lubin, formally opposes the proposal. Aave founder Stani Kulechov also criticized it, alongside concerns over its rushed timeline ahead of the Hegota hardfork deadline. The proposal remains under consideration and has not been finalized.