EIP-8361 is a cold shower for Ethereum’s inflation economy. After the Kelp DAO incident, this may be the second major wake-up call. Ethereum’s largest protocols now hold ~$66.6B TVL. Almost all of it sits in staking, restaking, lending and ETH wrappers. Together they paid just ~$3.7M in Ethereum L1 gas over the last year. Instead of creating proportional new economic activity, much of this capital is recursively recycled to maximize exposure to ETH issuance. 1/4