Vitalik Buterin Urges Layer 2 Networks to Share Fees to Support Ether

Vitalik Buterin, Ethereum co-founder, has presented a comprehensive strategy for expanding the Ethereum ecosystem. This approach focuses on bolstering layer-2 (L2) solutions, enhancing blob scaling, and solidifying Ether's position as the key economic driver.

In a detailed blog post, Buterin proposed that Ether should be reinforced as the central asset within the broader Ethereum economy, incorporating both layer-1 and layer-2 networks. He advocated for L2 networks to allocate a portion of their fees to support Ether and suggested increasing the count of blobs, a technological enhancement to boost transaction capacity.

While notable progress has been made in transaction fees and scaling through L2 networks, Buterin emphasized the urgency of accelerating their adoption and fostering greater interoperability among them.

Buterin underscored the sustainability of Ethereum's future, linking ecosystem expansion, technological advancements, and the pivotal economic role of Ether.

Operating atop Ethereum's main layer-1 blockchain, L2 networks have notably reduced user transaction fees and improved throughput. Nonetheless, Buterin stressed the necessity for broader adoption and interoperability between L2 networks, urging applications and wallets to foster a more unified ecosystem.

Highlighting the evolution of L2 networks from experimental phases in 2019 to their current status, Buterin advocated for standardizing crosschain communication and expediting deposit and withdrawal processes. "Using Ethereum should feel like a single ecosystem," he stated, emphasizing the need to ensure Ether continues to accumulate value in an L2-dominated landscape.

As part of his vision to integrate the Ethereum ecosystem, Buterin suggested prioritizing blobs, which facilitate more cost-effective transaction processing while maintaining decentralization and security. With the introduction of EIP-4844, Ethereum achieves 3 blobs per slot, equating to a data bandwidth of 384 kB per slot. Upcoming upgrades, such as Pectra, aim to double this, further increasing transaction capacity.

Buterin highlighted the potential of 2D sampling to reach 128 blobs per slot, with improved data compression methods pushing on-chain transactions capacity to 100,000 RPS.

Buterin also emphasized the importance of enhancing the technical, social, and utility aspects of Ethereum, cautioning against a lack of utility that could create a "decel" community driven by fear but lacking viable alternatives. He warned against sacrificing Ethereum's core principles for utility, drawing parallels with detrimental "greed-is-good" attitudes.

Despite advocating for inclusivity and collaboration within the Ethereum network, Buterin recently confirmed his unilateral authority over the Ethereum Foundation's leadership until the implementation of a restructuring plan.

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