All these Altcoins are donated by Vitalik Buterin

Ethereum founder Vitalik Buterin has announced that he plans to donate all of the proceeds from Layer 2 (L2) and the project tokens he owns. His interest is in supporting public goods in the Ethereum ecosystem or charitable activities.

Buterin's recent transactions are seeing mixed reviews between sales and donations.

Vitalik Buterin supports growth

The Ethereum executive's comments stemmed from discussions with founders about their interactions with their projects' tokens. More precisely, his Ethereum transactions in recent weeks have raised concerns that he is selling ETH.

Buterin has denied keeping any proceeds from any sales for the past six years. All profits will go to support value-adding projects in the Ethereum ecosystem and beyond, he said.

“The above BTW also applies to L2 tokens or other project tokens I own (including non-liquid ones). All proceeds will be donated, again either to support public goods in the Ethereum ecosystem or to a wider charity (eg biomedical R&D),” Buterin explained.

In addition, Buterin does not intend to invest in L2s or other projects in the near future, promising to support less valuable projects. His chosen approach to developing these projects is through grants.

In fact, Buterin has recently made several donations. BeInCrypto reports As some saySent by Multisig Wallet as seen on Etherscan.

Read more: How to donate crypto using Block Giving

Among Buterin's most obvious donations was 100 ETH (worth $300,000 at the time) to support the 2077 Collective, a group dedicated to promoting Ethereum adoption. The Russian-Canadian inventor donated 30 ETH to the legal defense of Tornado Cash developers Alexey Persev and Roman Storm in May.

Meanwhile, Buterin's move to sideline L2's investments should not be taken as a move against the growing number of scaling solutions. A week ago, attacks on Ethereum L2s were challenged by cyber security experts, alleging that the network's Layer-2 solutions could steal users' funds.

“A major difference: Level 1 rules require that only the Security Council with a >= 75% voting threshold can override the code, and a blocking quorum (ie >= 26%) must be outside the company. OP and ARB both respect this. Therefore, the organs cannot unilaterally steal money,” Buterin wrote.

Layer 2 chains are important

L2s solve challenges regarding network congestion, especially during peak periods. They aim to address the high transaction fees, increase speed and poor user experience, weaknesses associated with Layer 1 (L1) blockchains. L2s efficiently increase the capacity of the network to handle more transactions per second while maintaining security.

According to data from L2Beat, the total value locked in Ethereum's L2 networks exceeded $33 billion as of September 6.

Read more: Layer 1 vs. Layer 2: What's the Difference?

This growth demonstrates the impact these measurement solutions are having on driving adoption. Coin98 Analytics reports that Base L2, Ethereum's scaling solution, has recorded the highest number of unique addresses among popular blockchain platforms. It added 15.97 million users between August and September.

The rise of unique addresses reflects the acceptance and recognition of L2 solutions as viable alternatives to traditional blockchain platforms.