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Brent Fitzgerald
@bf
What’s the thinking or dialog around L2s as value extraction middlemen? Win by attracting users, being sticky, then eventually exploiting them. Meanwhile mainnet validators they derive security from see less and less revenue. It’s getting siphoned off at the layer above. Just a hunch as I’m seeing more projects launch their own chains.
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shazow
@shazow.eth
What's the distinction of L1 getting more efficient for L2 vs L1 undercharging for L2? The entire point of increasing efficiency is less revenue per unit, to support dramatically more units. Can we make a straight-face prediction that we'll scale ETH L2s to 1000+ TPS and ETH will be making less revenue than before L2s? (Also don't forget EigenDA and other restaking brings in revenue through restaking rather than displacing calldata fees into blob fees.) https://x.com/materkel/status/1845011100816773380
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shazow
@shazow.eth
Aside: I'm fairly sure we all agree that optimizing for ETH L1 revenue is the wrong move at this point.
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Brent Fitzgerald
@bf
Not suggesting optimizing for it, but I'm genuinely curious how much L2 weight the L1 validators are able/willing to carry. If we have 1000s of centralized L2s with very little usage, each occasionally rolling up to mainnet blobs for a pittance, and little other mainnet usage, what happens to mainnet security via staking over time? Genuine question, as I haven't seen this modeled out anywhere.
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xh3b4sd ↑
@xh3b4sd.eth
Those scenarios are hard to model because we make lots of assumptions. If there are 1000s of L2s, then I think there are more reasons for not being "centralized", whatever that may mean. 1000 L2s making only 1 tx per minute is still 16 blobs per second without accounting for interoperability, which inevitably increases economic activity and thus fees generated on L1. So say 1 cent per blob, is 16 cents per second, is 500 million USD in native L1 DA, which is the lowest revenue category for L1. The more L2s the more supply sinks for ETH. And if validators think it's not worth it staking, then we should see the staking queue empty. That is not what we are seeing. We have researchers worrying about too much ETH being staked right now.
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