Layer 2 solutions have significantly influenced the blockchain and its ecosystem, enhancing Ethereum’s operations. However, they have also created some challenges.
Impact of L2s on Ethereum
L2 solutions like Base and Optimism have proven successful by reducing congestion on the Ethereum mainnet and lowering fees. However, some experts believe that this has led to insufficient revenue for Ethereum itself, a topic discussed at the Cornell Tech conference. David Hoffman, a co-founder of Bankless, stated, 'People in the Ethereum Foundation say that yes, we messed up by being too ivory tower.' This raises concerns that Ethereum is missing out on potential revenue opportunities.
Revenue and Fee Data
L2s like Base are showing significant revenues from transaction fees, but none of this revenue is flowing back to Ethereum. Speaker James Beck noted that many in the ecosystem are asking how to make Ethereum stronger, given ETH's price decline. For instance, Base earned close to $98 million in revenue, with only $4.9 million directed to fees paid to Ethereum.
Ideas for Reform and Collaboration
Some researchers suggest that Ethereum should be more aggressive in collecting revenue, such as imposing a fee on L2s. However, there are concerns that such moves could push users away and lead to a leakage of activity to alternative blockchains. Additionally, there are efforts underway within the Ethereum community to address interoperability and the distribution of fees between L2 and the main network.
The arguments surrounding the role of L2s in Ethereum's ecosystem continue to evolve, and further discussions are needed to find the optimal balance between revenue generation and decentralization.
