🚨 New EIP: Tapered Issuance Burn We just submitted an EIP to ethereum/EIPs: a minimal, market-driven fix to Ethereum's issuance policy removing the incentive for stake growth beyond 50% of ETH supply. EIP-8361 by @pintail_xyz, @jdetychey, @dapplion, @pa7x1, @ladislaus0x & @drakefjustin 🧵

Today we're launching EthSystems. We build confidential systems for institutional Ethereum. Institutions want to use Ethereum, but one of the biggest problems is the lack of built-in, modular privacy tools. We were the Ethereum Foundation's Institutional Privacy Task Force (IPTF) for the past year. We had hundreds of conversations with central banks, regulators, tier-one banks, and asset managers, shipping open source work the whole time. Wall Street has found crypto as an asset class, but not yet as commercial infrastructure. Institutions want to run real flows on Ethereum: stablecoins, tokenized assets, settlement. These are businesses with billions of dollars on the line, and no bank will operate in full public view. On a public ledger, confidentiality is the hard part: each party to a transaction should see what it has a right to see, and nothing more. We have a year of proof of work: private bonds, confidential stablecoin transfers, private settlement across chains, the Ethereum Privacy Map, and more. All with protocol specs and security properties, at our website. We've spent a decade working on privacy in crypto. We know there's no silver bullet. Different use cases need different systems, each designed, specified, and hardened properly, and someone has to do that work. That's why EthSystems exists. We're an independent, for-profit company, backed by long-term Ethereum-aligned investors. This is a decade-long transition, and we aren't going anywhere. If you're an institution that wants to build on Ethereum, talk to us. We're hiring: BD in New York, protocol engineers, ops: [email protected]

So @SkyEcosystem cut token buybacks from 75% to 7.5% ‣ No regulator forced this ‣ No exploit triggered it The protocol looked at $407M in annualized fees and decided to build a balance sheet instead of distributing it and that's the first DeFi protocol publicly choosing to be a bank instead of a token project. Token holder net income collapsed from $20.60M to $1.16M in one quarter. The income statement tells the story clearly: ➥ Q1 2026 buybacks: $20.60M ➥ Q2 2026 so far: $1.16M So where's the money going? A $150M solvency reserve. Currently at $50.9M. At $5.7B in TVL that's roughly 0.9% coverage. Banks hold 4.5-7% minimum. Sky isn't close to bank-grade yet but it's the first DeFi protocol to acknowledge that zero reserves isn't decentralization. It's a liability dressed up as capital efficiency. If you hold $SKY and this frustrates you, I get it. You bought a governance token expecting buybacks to support the price. Instead the protocol is saving the money you thought was yours. But the protocols that blew up in 2022 (Terra, Celsius, FTX) all had one thing in common: they paid out everything during the good quarters and had nothing left when the bad ones arrived. Different products, same pattern i.e zero cushion underneath. Revenue in ⭢ distributions out Sky is making the decision that would've saved every one of them. It just doesn't feel good while it's happening. The question isn't whether you like this quarter's allocation. It's whether you'd rather own a token with a weaker chart today or a protocol that's still standing after the next stress test. The next 2-3 years are going to be real stress test for the protocols. Here's what to ask about every DeFi protocol you're in right now👇 1. What happens to your deposits when an exploit creates hundreds of millions in bad debt and the protocol has nothing saved? 2. Whether the buybacks you're receiving are coming from revenue the protocol should be keeping as a buffer? 3. Whether a protocol generating hundreds of millions in annual fees and choosing to distribute all of it is being generous or reckless? Sky just set a standard every other protocol will eventually have to meet. IMO the ones that do it voluntarily will earn institutional capital. h/t to @DefiLlama for the data