Content pfp
Content
@
0 reply
0 recast
0 reaction
kripcat.eth 🎩 pfp
kripcat.eth 🎩
@kripcat.eth
Genuine question. To what extent is it possible for ETH to become “top heavy”? Is there a timeline where the modular blockchain thesis is successful and thousands of L2s collectively form the global infrastructure of a new decentralised financial system, shuffling trillions of dollars in value daily, all settling down to mainnet but ETH the asset does not accrue a substantial portion of this value? Doesn’t the economic security model ensure that if ETH is the backbone of a massive financial system, but undervalued as an asset then the whole system is vulnerable to attack? Is it possible to be bullish on the modular thesis but bearish on ETH the asset?
4 replies
0 recast
3 reactions
Thomas pfp
Thomas
@aviationdoctor.eth
This sounds like the inverse of the fat protocol thesis which keeps me awake at night (that, and jet lag). In Web2, the value accrues to the application layer and not at all to the protocols (HTTP, TCP/IP, TLS, etc.), which are an indispensable commodity, but a commodity nonetheless. In Web3, the value is supposed to accrue in reverse of that. But that thesis was formed in 2016, well before L2s appeared on the roadmap. That’s important because as an ETH hodler/staker, I own part of the Ethereum protocol, but I don’t own any of the bespoke L2s that are increasingly app-like (think Base and the literal Coinbase Wallet app built as its front end) and capture value through sequencing. The other aspect that the fat protocol thesis didn’t anticipate is when the unit cost of settling onto the L1 asymptotically trends toward zero due to blobs and other blockspace capacity scaling innovations. So yes I think it’s a valid concern and I would love to be explained why I’m wrong
2 replies
0 recast
3 reactions
Caster Cat #648 🎩🧾 pfp
Caster Cat #648 🎩🧾
@ariansh.eth
If this were to happen I would expect usage of ETH in defi and as a gas token on L2s to skyrocket. Also, ETH would accrue value from proofs and data being posted to L1. I’d be surprised if this isn’t reflected in the price of ETH not to mention the value accrual that will happen directly on L1
0 reply
0 recast
0 reaction
abrikos 🎩 pfp
abrikos 🎩
@abrikos
100 $degen
1 reply
0 recast
0 reaction
pa7x1 pfp
pa7x1
@pa7x1
Yes, it's possible. It requires for blobspace to be over-supplied and therefore no blobspace fee market to ever form. But I guess if that were to happen we could always cut down the number of blobs until a fee market develops. Or tweak the EIP-1559 like mechanism so that it doesn't drop blob fees to 0.
0 reply
0 recast
0 reaction