Proposal to reduce Ethereum issuance sparks fierce criticism from crypto community

PANews reported on April 2 that according to Bitcoin.com, different groups are carefully studying the issuance curve of Ethereum in view of the latest trends and structures in the Ethereum protocol. A recent paper titled "The Issuance Problem" written by Ethereum Foundation researcher Mike Neuder supports adjusting token issuance as a way to solve some of the problems with today's Ethereum reality. These issues include the viability of maintaining independent staking relative to liquidity staking protocols, and ignoring high levels of staking that harms staking rewards. In the article, Neuder advocated for a reduction in issuance in Ethereum’s next upgrade, “Electra,” supporting a view discussed by Ethereum Foundation researchers Angar Dietrichs and Caspar Schwarz-Schilling in February of this year.

While Neuder and others support censoring this key element of Ethereum’s behavior, other researchers and developers have vehemently rejected this position. One of them is Eric Conner, co-author of Ethereum Improvement Proposal 1559 (EIP-1559), who strongly opposes the proposed changes to the Ethereum issuance curve. He emphasized: "The current push to adjust the Ethereum issuance curve is completely an overreaction to unfounded centralization concerns." Conner said he would "use all his strength" to oppose the idea. Ethereum core developer Ahmad Bitar also raised objections to the change. Bitar emphasized that the goal of the proposal is unclear, claiming that the current issuance curve has not led to value erosion. Regarding the current issuance curve, he said: "It has been negative since the merger, and it doesn't look like it will stop anytime soon. I don't understand what problem you are trying to solve." Ethereum investor Ryan Berckmans also slammed the reduction The idea of Ethereum issuance. He stated that the consequences of not changing this parameter are only speculative and would not harm the community as much as simply implementing issuance curve reduction.