Ethereum founder sets new standards for L2 project recognition

TLDR

Vitalik Buterin revealed that he sold $2.28 million worth of 950 ETH in recent weeks. Buterin revealed that the sale was triggered by an automated order placed on August 29th. Starting in 2025, Buterin officially mentions Layer 2 solutions on several ZK package teams at “Level 1” development or higher. In the year Buterin believes “the era of embedded multisig glory is about to come to an end” to reach Tier 1 by the end of 2023.

Vitalik Buterin, the founder of Ethereum, recently spoke about his concerns about the sale of Ether (ETH) tokens. On-chain data shows that the one associated with Buterin, also known as vitalik.eth, has sold 950 ETH worth approximately $2.28 million in the past two weeks.

vitalik.eth(@VitalikButerin) deposited $2.27M into #Aave 3 hours ago after selling 950$ETH in the last 2 weeks. pic.twitter.com/7SVFHjnAOT

— Lookonchain (@lookonchain) September 12, 2024

When asked about these sales, Buterin explained that the most recent trading was triggered by “an automatic cattle swap order that was set back on August 29.” He explained that this was the last of these pre-orders.

The sale took place at an average of $2,396 in ETH. Some of the proceeds, totaling around $6.73 million in USDC stablecoins, were transferred to the Aave platform.

Strict standards for L2 projects

In addition to solving ETH sales, Buterin has announced new requirements for publicly specifying Layer 2 (L2) scaling solutions. From 2025, it will recognize L2 projects that have reached “Level 1” or higher in their development.

I take this very seriously. Starting next year, I plan to only refer to L2s (in blogs, talks, etc.) who are level 1+, *perhaps a short grace period* for new really interesting projects.

It doesn't matter if I invest, or if you are my friend; Stage 1 or breast.

More… pic.twitter.com/4cGxgsfmUc

— vitalik.eth (@VitalikButerin) September 12, 2024

Buterin emphasized that this standard applies globally, regardless of any private investments or project connections. “It doesn't matter if I invest or if you are my friend. Level 1 or bust.

The Ethereum founder has outlined the requirements for Level 1, which include:

Active fraud-proof or authenticity-proof scheme Multi-signature-based revocation mechanism Stringent conditions Minimum 6 out of 8 signatures requirement for Security Council quorum Blocking group outside collective organization Seven-day delay window Amendment window

Buterin expressed optimism about the development of Zero Knowledge (ZK) cluster groups, noting that several are on track to reach Level 1 by the end of 2023. But he cautioned against prematurely removing the “training wheels.” Validation systems are measured until they are completely reliable.

The decentralized way to L2

Buterin's announcement builds on the concept of “training wheels” for Ethereum scaling rollup projects in 2022. He outlined three stages of development for L2 solutions.

Level 0: “Full Training Wheels” – Simple multi-signature wallet control with basic wrapping functionality Level 1: Introduction of fraud or authenticity checks with specific Security Council requirements Level 2: “No Training Wheels” – Security Councils are very limited and extended Update activation delays

Several prominent L2 teams, including those behind Linia, ZKsync, Arbitrum, and Optimism, have indicated that full Level 2 decentralization could be achieved within a few years.

Buterin sums up the statement, “Roll Praise Multisigs is coming to an end. The era of cryptographic trust is upon us.