Yes it is called Silicon Degradation. Over time your CPU degrades and begins needing higher and higher voltages to maintain its over clock.
"im thinking about running folding@home, but i want to know if it will shorten/decrease the lifespan of my cpu. heat is not an issue, i get 60C on full load."
Probably will last a good long time because it looks like you are running stock speeds. Are you overclocked/turboed at all?