In practical terms, as the amount of staked ETH approaches roughly 50% of the total supply (around 60.25 million ETH), performing validators would reach net zero issuance. Currently, about 41.5 million ETH is staked, representing roughly 34% of the total supply, with yields hovering around 2.67%. The proposal’s most aggressive effects would only kick in as staking climbs toward that 60.25 million ETH threshold. Even with dramatically lower yields, staking remains profitable for them because their cost basis is fundamentally different. A protocol like Aave, which holds significant positions in staked ETH derivatives as collateral, has direct financial exposure to these policy decisions.