The Daily Gwei

Independent Ethereum educator, angel investor and advisor. 

Founder of /thedailygwei.

@sassal.eth, thoughts on the argument that 4844 will be bearish due to lower fee burn by L2s? 

From my view, Eth’s monetary policy is already ~0% inflation even without L2 fee burn, so it’s far more important to increase L2 throughput and decrease fees than lamenting Eth might not be deflationary long term.

It’s an interesting thought exercise. Cause technically 4844 decreases Eth’s value from a DCF perspective - in the short term - but expands it from a SoV/Moneyness one. Which from my limited understanding is probably still net accretive, if more nebulous.

Agree but also ETH gets most of its value from being a money/SoV - not from fee revenue.

Cheaper fees on L2's > more people using them > more people using ETH > ETH's moneyness properties increase > more valuable ETH.