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Staking Inflation Reforms Trap Ethereum and Solana in Centralization Dilemma

Ethereum and Solana face a dilemma over cutting staking rewards to curb centralization, as both chains rely heavily on token issuance to pay validators. Reducing rewards would disproportionately hurt small node operators, while maintaining them favors large institutional stakers, ultimately shrinking validator counts. The debate highlights the tension between DeFi’s reliance on staking yields and the goal of decentralization.

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