# Why the Ethereum Community Is Up in Arms Against a Proposal

Source: https://unchainedcrypto.com/why-the-ethereum-community-is-up-in-arms-against-a-proposal-to-change-the-monetary-policy
Kiwi News: https://news.kiwistand.com/stories/Why-the-Ethereum-Community-Is-Up-in-Arms-Against-a-Proposal?index=0x660d98b799bacefb5fa7a071e49ec9cc2380f15e4b5c5bd6cf329fc529e04609cf3b7623
Submitted by pedrovilela.eth on 2024-04-03 UTC, 7 upvotes, 2 comments

## Summary

Ethereum Foundation researchers Ansgar Dietrichs and Caspar Schwarz-Schilling proposed changing Ethereum's issuance curve to keep the staking ratio balanced, and the proposal has drawn strong opposition from parts of the community. The authors argue that a high staking ratio creates negative externalities, including diminishing real staking yield, inflationary pressure on non-stakers, and centralization risk, with Lido holding 30% of staked ETH. Critics such as Eric.eth, Martin Köppelmann and Jon Charbonneau say the change undermines ETH's monetary stability or only shifts incentives between groups. One community member also argued the move could strengthen SEC arguments that ETH is a security.

## Comments

**macbudkowski.eth**: I saw some heated discussion on Twitter but didn't get the full picture; thanks for sharing that, Pedro.

I understand these researchers' good intentions and fair points (especially the one about using stETH and other LSTs as a primary currency seems like a significant risk). Still, the timing for this discussion is bad. 

SEC hawks would love to find a reason to treat ETH as a security. So, if the Ethereum Foundation suggests it could behave like a central bank by influencing the ETH's monetary policy, it would just give the SEC the ammo to shoot it down.

**tim**: I thought the SEC argument in the article for shutting down the proposal was particularly stupid. And btw. let it be known that I also find it incredibly stupid to even speculate on what the SEC's process is to allow an ETH ETF. In any case, even if ETH is a security, an ETF can be launched on top of it and the Vanguard CEO already said this live on TV. 

And besides, I think nobody except for a few tradfi people actually care for an ETH ETF. Launching an ETH ETF is not part of the ETH roadmap and it literally doesn't matter.

Ethereum is arguably a project that spans FAR more countries than just the United States and it has a much more far-reaching vision than what people like to attribute.

The reason why people are up in arms against this proposal and why it is shut down without a discussion is because the incentives for it are in place. I bet that if you correlated the number of ETH stakes vs. users who are extremely against this proposal, then they'd highly correlate. People are getting low-risk yields on staking ETH and it is being proposed that they'll get less yields. Obviously, they're against this.