Aave founder Stani Kulechov and ether.fi CEO Mike Silagadze have come out against a proposal to burn a rising share of Ethereum validator rewards. They join a chorus of DeFi founders, solo stakers, and researchers who have spent the past two days arguing against the plan on X and the Ethereum research forum. The proposal, if implemented, would reduce the income validators earn over time, potentially reshaping incentives for staking and network security.
Who's opposing the proposal
Kulechov and Silagadze are the latest high-profile names to publicly reject the idea. The opposition list now includes several DeFi founders, a number of solo stakers, and at least three researchers who have posted detailed critiques. The debate has been running for roughly 48 hours, with most of the pushback concentrated on X and the Ethereum research forum. Neither Kulechov nor Silagadze offered a detailed technical argument in their initial posts, but both signaled clear disapproval.
What the proposal would do
The proposal calls for burning an increasing percentage of the rewards that Ethereum validators earn for securing the network. Currently, validators earn a mix of newly issued ETH and transaction fees. Under the plan, a portion of those rewards would be destroyed, reducing the total supply of ETH over time. Proponents argue this would make ETH more scarce and potentially boost its value. But critics say it would cut into validator profits, especially for smaller operators who already face thin margins.
Why the opposition
Opponents have raised concerns about the impact on solo stakers and the broader staking ecosystem. Solo stakers — individuals running a single validator node — often rely on reward income to cover hardware and electricity costs. A rising burn rate could push them out, critics argue, concentrating power in the hands of large staking pools. The debate has also touched on whether the proposal would undermine Ethereum's security budget. Researchers on the forum have pointed out that reducing validator rewards could make the network less attractive to new stakers, potentially lowering the total amount of ETH staked.
The proposal's future is uncertain as the discussion enters its third day. No formal vote or Ethereum Improvement Proposal has been submitted yet. The Ethereum research forum remains the primary venue for debate, with new counterarguments appearing every few hours. Whether the idea gains traction among core developers — or fades into the background — will depend on how the community weighs the trade-off between supply reduction and staking incentives.
