Ethereum just proposed killing its own staking yield and the market is already bleeding 👀

EIP-8361, co-authored by the EF's Justin Drake, would burn a rising share of validator rewards as staking grows. At 50% of supply staked, new issuance hits ZERO.

The logic: yield never drops below ~1.5% today no matter how much is staked. No off-switch. At current pace, 55%+ of all ETH would be locked by 2028.

The reaction:
→ $LDO dumped as much as 16% on the news, still down ~7%
→ $ETHFI fell double digits, still down ~6%
→ Aave's founder publicly against it: "unpredictable yields, hurtful for Ethereum"

Average yield would fall from ~2.6% to ~1.2%. Every LST, every DeFi loop, every institutional staking desk gets repriced.

Still a draft. Two-year rollout if passed. But the market isn't waiting to vote 🫡