The discussion within CurveDAO focuses on the possibility of halting new Layer 2 deployments on Ethereum due to economic inefficiency.
Reasons for Halting Layer 2 Deployments
Community member Phil_00Llama expressed the belief that further deployments to Ethereum Layer 2 should be halted. He pointed out that such projects consume significant developer resources while yielding minimal revenue.
Comparing Revenues Between Layer 1 and Layer 2
According to Phil_00Llama, mainnet pools can earn 450 times more than all Layer 2 pools combined. DeFiLlama data shows that most of the $2.3 billion total value locked is concentrated on Ethereum Layer 1, while Arbitrum and Base combined hold only around $50 million.
DAO Participants' Perspectives on the Future
Another DAO participant echoed the sentiment, noting that Layer 2 platforms generate just $1,500 in daily revenue despite high upkeep costs. There is a belief that focusing efforts on Ethereum’s core infrastructure could yield greater long-term value.
In conclusion, the discussion within CurveDAO highlights the economic viability of developing Layer 2 solutions versus potential alternative growth strategies on Ethereum.
