EIP-8363 Mitigation Plan

General
21

An option to give LDO at least some utility looks better than the option of raising fees.

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22

Both scenarios are plausible, but honestly I hope neither of them ends up becoming a proposal to vote on.

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23

I guess everyone already knows it, but I wanted to leave a comment here.

EIP-8363 has been withdrawn from Hegotá consideration: EIP-8363: Tapered Issuance Burn - #271 by jdetychey - EIPs core - Fellowship of Ethereum Magicians. Instead, EIP authors proposed moving the broader issuance question into a dedicated 6-month process.

A few thoughts from my side to share with the Lido community:

  1. This is what Lido contributors suggested from the beginning. Our position was not that issuance should not be discussed, but that a change of this importance should not be settled through the scoping process of a particular hard fork. We explicitly requested that this EIP not be considered for Hegota before the community had a structured, open discussion about the problems issuance reform is trying to solve, the objectives, possible solutions, and their consequences. It is encouraging that, although the EIP authors did not initially accept this suggestion, the discussion has now converged in this direction.
  2. It is also worth noting that the authors explicitly acknowledged Lido’s willingness to engage constructively in this discussion and invited Lido, among others, to participate actively in the dedicated process. I think this is important: our position has never been “do nothing” or “protect the status quo.” We have raised concerns because we think these questions matter for Ethereum, and we intend to continue engaging seriously in finding good answers.
  3. There is no reason to relax or celebrate. As Lido contributors, we will continue working on what staking may look like over the next 2–3 years and make sure Lido staking remains high-quality, secure, and sustainable across a wide range of realistic scenarios: different issuance policies, ETH prices, and major Ethereum protocol changes (e.g., Lean Ethereum). Some scenarios may require substantial adaptation to remain compatible with Ethereum without degrading staking quality or security. But adapting to Ethereum as it evolves is also exactly the kind of work Lido and its contributors have had to do repeatedly. Separately, Lido contributors are also looking more broadly at Lido’s strategy across different market and protocol scenarios, including Lido Lend. That is a wider discussion and more information will come soon, so it’s probably better suited to a separate thread.
  4. The concerns raised in this thread remain important. I hope the dedicated issuance process will be open, constructive, and well structured: clearly defining the problem and its urgency, the desired outcomes, alternative mechanisms, and the impact and trade-offs of each. Staking ratio, validator-set composition, solo staking, capture resistance, staking economics, and ETH’s monetary policy are related but distinct questions, and should be examined individually rather than bundled into one broad argument with a solution assumed in advance.

Overall, I think this is a good procedural outcome. Now the important part is to use the additional time and dedicated process well. Lido is strongest when Ethereum is strong, resilient, and credible.

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