Ethereum

Ethereum is the world computer. The universal platform for cryptocurrencies, blockchain apps, stablecoins, and decentralized technologies.

Official account of the Arbitrum Foundation.

https://arbitrum.io/

🧩 What are blobs?
Blobs (from EIP-4844, a.k.a. proto-danksharding) are part of @ethereum’s scalability path.

They allow Layer 2s (like @optimism, @arbitrum, @base) to post calldata more efficiently and cheaply to @ethereum mainnet.

Crucially, blob data is not stored permanently on-chain, making it ephemeral and scalable.

Cryptocurrency enthusiast with a deep understanding of blockchain technology and active engagement in the global crypto ecosystem

📈 The effect since Dencun
Since the activation of blobs:

ETH has become slightly inflationary again.

Why? Network activity shifted toward cheap blob-based transactions (especially from L2s), lowering the burn rate.

Meanwhile, ETH issuance (from staking rewards) continues as usual.

Net effect:
ETH supply is now increasing very slightly 📈

🔥 Does that break the “ultrasound money” thesis?
Not really — but it does evolve it.

ETH is still more sound than pre-Merge (90% lower issuance).

But Ethereum’s economic model is now more neutral, prioritizing scalability + adoption over pure deflation.

It’s deflation during L1 congestion, but mildly inflationary when scaled to L2s.

💸 Why do blobs affect ETH burn?
Because blob transactions don’t consume “gas” in the traditional way.

Regular Ethereum transactions burn the base fee (EIP-1559) → contributes to deflation.

Blob transactions use a separate “blob fee” mechanism — but this fee is not burned.

So when activity shifts to blobs, less ETH is burned, even if usage is high.

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Sure! Right now the focus is clearly on scaling (L2s, blobs).
There’s no major proposal yet to redirect more value to L1 — but it's a growing topic of debate, especially as L1 burn drops.

This is a great write-up!

Are there any proposals on the horizon to alter these economics to drive more value to L1? 

Or focus on scaling for now and fees down the road?