The draft Ethereum proposal would burn a rising share of validator rewards until staking yield hits zero. Aave founder Stani Kulechov and Sharplink have opposed EIP-8363, a draft Ethereum proposal that would burn validator rewards down to nothing as more ETH is staked. Big DeFi players are against reducing staking rewards because it has become a base interest rate for the Ethereum economy. And he argued that staking rewards are not really a cost—they’re just ETH moving from one holder to another. “Save ETH staking,” he wrote, warning that compressing liquid staking token yields could undermine a large slice of DeFi lending markets.