• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ethereum's Threat: Passive Role Amidst L2 Value Extraction

user avatar

by Giorgi Kostiuk

6 hours ago


L2 solutions now extract significant value from Ethereum without adequately contributing to its security, raising concerns about the network's sustainable future.

L2 Gains and Ethereum's Role

Currently, L2 networks pay minimal fees to Ethereum while generating substantial revenue. For instance, Base generated approximately $2.5 million in fees last month but only paid Ethereum $11,000. Optimism earned $321 for every $1 it contributed to the network.

Economic Discrepancy between L2 and Ethereum

Most rollups do not use ETH as gas, creating their own tokens, further reducing Ethereum’s direct value capture. Although L2s rely on Ethereum’s security, they contribute only a fraction of what they extract, resulting in an economic imbalance.

L2 solutions enjoy high profitability while Ethereum sees little benefit from the value they generate.

Creating Economic Balance

Addressing this issue requires L2 involvement in Ethereum's economic security. One proposal is to require L2 sequencers to stake ETH as collateral. Additionally, a portion of all L2 fees should be redirected to Ethereum stakers. MEV produced on rollups must also be redistributed to Ethereum validators.

Ensuring Ethereum's sustainability requires L2 solutions to contribute to its security, maintaining the network's integrity and stability.

0

Share

Other news

Promising Altcoins: BDAG, Solana, Dogecoin, and Cardano

Exploring BlockDAG, Solana, Dogecoin, and Cardano – altcoins with unique features and growth prospects.

user avatarGiorgi Kostiuk

30 minutes ago

Innovations in the Crypto Market: Qubetics, Polkadot, and Cosmos

Projects Qubetics, Polkadot, and Cosmos showcase innovation and growth potential in the crypto market, focusing on real-world applications.

user avatarGiorgi Kostiuk

31 minutes ago

Brazil: Crypto and Bitcoin Salary Discussions Underway

Brazilian Congress reviews salaries in cryptocurrency with 50% required in reais.

user avatarGiorgi Kostiuk

35 minutes ago

Altcoins and Their Future: Bitcoin's Key Levels of Influence

The altcoin market is under discussion in light of Bitcoin's critical levels and volatility.

user avatarGiorgi Kostiuk

38 minutes ago

Clearstream to Offer Institutional BTC and ETH Custody

Clearstream, a Deutsche Boerse unit, announces crypto custody services for institutional clients.

user avatarGiorgi Kostiuk

42 minutes ago

Market Analysis: Challenges in Altcoin Recovery and Investor Strategies

Altcoins show short-term growth, but analysts warn of risks. Bitcoin's support and resistance levels are critical.

user avatarGiorgi Kostiuk

an hour ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.