Aave founder says ETH issuance cut tied to staking ratio may deepen centralization

Aave founder Stani Kulechov opposed a recently proposed EIP that would reduce Ethereum issuance in proportion to the ETH staking ratio, arguing the measure could instead deepen an institution-driven staking structure. In the Ethereum Magicians forum, Kulechov reproduced the English phrase "Ethereum Magicians" and said that as yields fall, individual validators facing higher cost burdens would likely exit first, while ETF issuers and exchanges would be more likely to keep staking for business reasons. He argued that if institutions continue staking even with little profit, cutting issuance would not solve centralization concerns, while if validators continue demanding returns high enough to justify the risks, the number of stakers would naturally level off, leaving no reason to intervene. In either case, he said, the proposal would fail to meet its goal. Kulechov also urged a review of the impact on individual validators and tax issues first, alongside safeguards to ensure a minimum yield.