EIP-8361 Proposal Triggers Vibration in the LSD Sector🔥
A new Ethereum proposal, EIP-8361, suggests that when the staking ratio reaches 50%, validator rewards should drop directly to zero. The news instantly ignited panic selling across the LSD sector: $LDO saw a 16.3% one-day plunge, $ETHFI followed down 9.6%, and the entire liquid staking derivative (LSD) market led the downturn.
The core logic is simple: the higher the staking ratio, the lower the rewards—meaning the expected returns for holding LST tokens get significantly compressed. As leading LSD protocols, Lido and ether.fi are naturally the first to be hit.
But from another angle, this is only the proposal stage, and there’s still a long community debate before anything is actually implemented. Ethereum’s core developers have historically been cautious about making big cuts to validator rewards, and the final version will very likely be adjusted. So the short-term sell-off driven by sentiment may be an overreaction.
Still, the long-term logic of the LSD sector is definitely worth re-examining—when Ethereum’s own staking yield is suppressed, how much room is left for value capture in the middle layer? That might be the more important question to think about.
#ETH#LSD#Lido
A new Ethereum proposal, EIP-8361, suggests that when the staking ratio reaches 50%, validator rewards should drop directly to zero. The news instantly ignited panic selling across the LSD sector: $LDO saw a 16.3% one-day plunge, $ETHFI followed down 9.6%, and the entire liquid staking derivative (LSD) market led the downturn.
The core logic is simple: the higher the staking ratio, the lower the rewards—meaning the expected returns for holding LST tokens get significantly compressed. As leading LSD protocols, Lido and ether.fi are naturally the first to be hit.
But from another angle, this is only the proposal stage, and there’s still a long community debate before anything is actually implemented. Ethereum’s core developers have historically been cautious about making big cuts to validator rewards, and the final version will very likely be adjusted. So the short-term sell-off driven by sentiment may be an overreaction.
Still, the long-term logic of the LSD sector is definitely worth re-examining—when Ethereum’s own staking yield is suppressed, how much room is left for value capture in the middle layer? That might be the more important question to think about.
#ETH#LSD#Lido