ethrd

A simple change to issuance like this will not stop LST dominance but it WILL kill off many Rocket Pool node operators who are far more sensitive to rate changes. 

If the goal is to keep Ethereum's solo stakers relevant, than this approach is not sufficient. 

1/n

Rocket Pool Community Advocate, former pDAO treasurer, shared oDAO member, incentives management committee, $DIVA delegate, rugged by Musk

Is your LST safe?

The proposed issuance change will prevent the staking ratio growing to the extent that an LST could effectively usurp ETH, which would be very bad and also difficult/impossible to recover from. As a home staker myself I don't relish a reduction in yield but I care more about the long term viability of Ethereum.

I disagree. 

LST holders are rare insensitive. Why do you think people will leave LSTs if the issuance is cut? The terminal picture is the same as long as nominal yields are positive. It will be better to hold an LST over ETH. 

LST holders face no expenses - staking at home costs time and money.