Intmax
@intmax
At #DevCon2024, "based rollups" were a hot topic. In his talk, Conor McMenamin (@ctrain) discussed the ¨Revenue Model for Based Rollups¨, which explores the financial dynamics surrounding rollups and the complexities involved in achieving sustainable operations. Let's discuss this talk and highlight how Intmax positions itself on this topic. https://app.devcon.org/schedule/LEFXQV Running a based rollup comes with upfront costs: zk/op provers: Expensive computational operations for cryptographic proofs. L1 fees: Costs for submitting rollup transactions to Ethereum's base layer. These substantial initial investments are barriers for smaller or new projects, making participation challenging without significant capital and an experienced team. The challenge is aligning the revenue streams to cover substantial costs while remaining competitive. Some examples in the rollup solutions industry have not succeeded so far. 1/4
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Intmax
@intmax
Here at #Intmax, we are achieving the balance between a sustainable ecosystem and keeping fees significantly low. Even with a large user base, transaction fees can remain as low as 0.50 cent in a highly predictable and stable way. Conor highlights that the ecosystem comprises the participants with their unique roles and costs: Users: Pay fees for transactions. Proposers: Submit blocks and earn proposer fees. ZK-provers: Bear significant computational costs to validate blocks. DAOs: Oversee rollup governance and often manage the treasury. 2/4
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Intmax
@intmax
Our approach is a stateless #zkRollup structure, so we significantly lowered computation and storage requirements. We especially improve computational efficiency by using just 5 bytes of on-chain data, and it can include an unlimited number of transfers without additional onchain cost. Our business model considers the costs that users pay for processing their transactions, the amount of processing they have to do on their machine, and the costs required to deploy and sustain Layer 2 rollups. Conor also states that users are at the core of a rollup's sustainability. • Positive user experience drives higher adoption and revenue. • To attract and retain users, rollups must focus on accessibility and low fees. 3/4
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Intmax
@intmax
We at Intmax are focusing not only on innovative technology but also on our economics. We work on maintaining long-term success for users and developers by making a scalable, cheap, and #privacy rollup. For us, this approach is vital to ensure long-term ecosystem growth and profitability. The evolving landscape of based #rollups requires a delicate balance between costs and revenue. At Intmax, we use careful planning and innovation to transform these challenges into opportunities. 4/4
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