EIP-8361 Proposal Will Significantly Reduce ETH Staking Yields

The EIP-8361 proposal submitted by Ethereum France will drastically cut the annual percentage rate (APR) of ETH staking. If the staking rate exceeds 50%, the yield will drop to zero. This proposal has been criticized as a meaningless "counterproductive" measure. Currently, the yield for ETH staking is only 2.4%, far below the yield levels of U.S. Treasury bonds. For individual Ethereum holders, solo staking yields are barely enough to cover costs, resulting in minimal profits. If EIP-8361 is implemented, solo stakers will face greater risks, while institutional stakers, due to their larger scale and fixed costs, will be less affected. Solo stakers are crucial for the decentralization of Ethereum. The queuing issues mentioned in the proposal regarding entry and exit do not require concern, as adjusting the churn rate can be done with simple parameter tweaks. In contrast, reducing Ethereum's yield requires a hard fork, which involves core interests, carries high risks, and could potentially lead to the emergence of new tokens.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.