Ethereum Researchers Propose Slashing Token Issuance, Sparking Debate

Ethereum Foundation researchers proposed reducing annual ETH issuance to 0.4% from 1.5% to disincentivize growth of third-party staking services like Lido.

Some community members push back, questioning if change is needed and if Ethereum Foundation has too much influence.

Proposal aims to avoid dilution of ETH holders and reinforce ETH's role as network's currency over liquid staking tokens.

Critics argue tweaks try to solve unsolvable tradeoffs in proof-of-stake design and lack rough consensus from stakeholders.

Ethereum Foundation figures defend process and say change requires broad community buy-in, admitting they could have solicited more feedback.