Ethereum scaling plans and network applications should start supporting the network’s native ether (ETH) to further depreciate the value for the asset, co-founder Vitalik Buterin wrote in a post on friday.
“We must pursue a multi-pronged approach, to cover all the major possible sources of ETH’s value as a triple-point asset,” Buterin said as part of a longer post on layer-2 scaling, security and interoperability. “Broadly agree to cement ETH as the main asset of the larger (L1 + L2) Ethereum Economy, support applications using ETH as the main collateral.”
Buterin called for the implementation of incentives for Layer 2 networks to allocate a portion of their fees to ETH using mechanisms such as burning fees, permanent staking, or directing proceeds towards public goods in the Ethereum ecosystem.
His comments come amid mounting criticism of the Ethereum Foundation, the nonprofit grantmaker that helps support Ethereum, as the asset loses cap and mindshare to competitors.
The widely watched ether-bitcoin ratio is up to 2021 levels. Bitcoin touched a record high of $109,000 earlier Monday and has returned 160% to investors over the past year. Ether, in the meantime, has only gained 40% over the period and hovers about 30% below its 2021 peak, as a Coindesk Assessment shown.
Another call-out is to increase Ethereum’s BLOB count while setting a minimum price for blobs, viewing them as “another possible revenue generator.”
“If you take the average blob fee for the last 30 days, and assume it stays the same (due to forced demand) while the number of blobs increases to 128, Ethereum will burn 713,000 et The demand curve is “not guaranteed” and therefore not an isolated strategy to cap the value of ETH.
Blobs are like regular transactions with an extra piece of transaction data attached. However, unlike traditional transactions, blob-bearing transactions do not permanently occupy the Mainnet Space and are only available for 18 days.
Since November, the daily tally of Blobs has averaged a record 21,000, with just two layer 2s – Coinbase’s base and chain – accounting for 55% of daily activity. Sustained demand for layer 2s can quickly exhaust available capacity, as a Coindesk Assessment mentioned earlier in the week.
