Bankless · Monday, August 10, 2026
Mike Silagadze of EtherFi criticized the EIP for its late proposal and its paradoxical aim to help solo stakers, stating it would actually hurt them due to increased operating costs relative to reduced yields. He argued that this would lead to centralization, with larger entities like Coinbase and Binance benefiting, and also noted that liquid staking tokens (LSTs) provide essential user protections and that the argument against them is a red herring.
“The other part of it was in standing, alluded to this is that it was in a bizarre way proposed as a way to benefit solo stakers when, when, Very straightforwardly, this hurts solo stakers.”
“So you're going to have basically an exodus from independent smaller operators. LSTs will immediately concentrate into one giant LST, liquid staking tokens, because at 20 basis points, 50 basis points, You're only making one basis point of revenue. And so you need massive scale for it to make any sense to pay developers and auditors and all that. So this is it's hugely centralizing.”
“And again, in a real economy, having a fixed money supply is really bad. There are no economists, no serious economists that would say, yeah, you should have a fixed money supply that never changes.”