Fixed rollups for Ethereum incentives between L2 payment arguments
Based Rollups can address the issue of Ethereum's layer-2 networks pulling liquidity and revenue away from the blockchain's base layer.
A layer-2 scaling solution that uses layer-1 validators to process instead of their own series “could directly impact Ethereum monetization by making a pretty fundamental change to incentive structures,” said Adam Cochran, venture partner at CinemaHine. September 10 X post.
This could easily increase the long-term demand for Ether (ETH) by 100 times, he said.
Validators can opt-in to make rolls based on earning additional rewards. The economic impact is an increase in the value of holding ETH, which can lead to higher yields.
based package structure. Source: Adam Kochan/Ex
Cochrane added that Based Rollups can interact with each other on other rolls, including liquidity access, cross-chain settlement transactions and overall gas demand.
Based Rollups balances incentives between Layer-2s and Layer-1 verifiers, allowing for zero takeout inflation while maintaining high volume production over the long term, he said.
For the first time, Cochran concluded that Ether's (ETH) boost will be driven by overall Ethereum Virtual Machine (EVM) usage, not ETH issuance speed.
“This fundamental separation is the kind that will put $100k ETH on the table in the next decade.”
Based coils are not a new concept and were mentioned in 2023 by Ethereum developer Justin Drake, who said they are “especially economically aligned with their base L1”.
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Ethereum supply turned inflationary in April following Denkun's reforms, which reduced the use of general gas (ETH) and significantly reduced Layer 2 fees.
This reduced the amount of ETH payments that could be burned, which in turn led to reduced network revenue and inflation.
Ethereum community member Ryan Berkmans dismissed recent concerns about Ethereum in a September 10 X post.
If total fees are forever low, the whole world can use Ethereum for dirt cheap and this will further force the adoption of ETH as a currency.
Regardless of whether fees are high or low, Ethereum's continued growth supports a big case for ETH, he concluded. This fits with the goal of fundamentally changing the economics of the network to benefit ETH holders with Based Rollups.
In a post on X on September 10, Ethereum developer Eric Connor said: “Ethereum is at its best ever, but sentiment is worse than ever.
“The future of crypto won't win on CryptoTwitter. It will win by providing the world with a decentralized, global financial settlement where ETH enjoys a natural monetary premium.”
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