Ethereum

Capacity increases may have mixed effects on prices, if network effects/induced demand overwhelm the new capacity.

What they do not have a mixed effect on: The total realised demand, which increases strictly.

This means more users on-chain, more interactions, more useful possibilities to transact. Unequivocally good!

Robust Incentives Group @ Ethereum Foundation

https://rig.ethereum.org

have you ever estimated price elasticity of demand for blockspace?

janitor for /zk and some more stuff here linktr.ee/randomishwalk

I haven't no, one grantee was planning to work on this, but turned out to be not that simple, I don't remember the reason exactly

I guess we’ll find out empirically very soon, and this will inform future decisions

PhD in aviation ∩ climate science | Aviator, diver, Etherean, nexialist | Host of /diving /ethfinance /eth-staker /geopolitics /science /singapore /thomas

Future expansions of blobspace for sure (full danksharding?), & more broadly any design decision that relies at least partly on some induced demand assumption (Braess? Jevons? Can’t remember which one). In my line of work these empirical measures are super helpful because they are hard to derive from first principles

Which decision would it inform according to you? One that I am seeing is the decision to allocate future gas limit increases to L1 gas vs blob gas. But otherwise I feel we should just have as much blobspace as possible, even if the elasticity is low