@coinmetrics: Are Layer 2s extracting $94M from Ethereum's security?

@coinmetrics
@coinmetrics

Are Layer 2s 'extractive' for Ethereum? In a recent @Cointelegraph interview, @Coinmetrics researcher @TanayVed broke down how the March 2024 Dencun upgrade slashed L2 data-posting costs - letting rollups like Base generate ~$98 million in transaction fees while sending only $4.9 million back to Ethereum. That’s about $94 million of “extractive” profit riding on mainnet security. Key takeaways: - Dencun’s effect: Blob transactions cut L2 posting costs by over 90%, supercharging rollup profitability - Base’s performance: ~$98 M in fees vs. $4.9 M paid to Ethereum: ~$94 M net gain since Dencun - Upcoming fee capture: Pectra hard fork doubles blob capacity (from 3 to 6, up to 9 per block), paving the way for greater L2 fee pass-through - Ongoing debate: Should Ethereum impose a "tax" on L2s or prioritize market-driven fee discovery and long-term network growth? For a deeper dive, see our State of the Network report "The Evolving Relationship Between Ethereum and Its Layer 2s" Also check out Tanay’s full insights in the Cointelegraph article. Both links are in replies.

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by timdaub.eth12379 🥝 • 1y • x.com
AI summary of the linked article

Coinmetrics researcher Tanay Ved, interviewed by Cointelegraph, argues that Layer 2 rollups extract value from Ethereum's security. He says the March 2024 Dencun upgrade cut L2 data-posting costs, letting Base generate about $98 million in transaction fees while paying only $4.9 million to Ethereum, roughly $94 million in net gain. The post notes that the Pectra hard fork doubles blob capacity, from 3 to 6 per block with a maximum of 9, which could enable greater L2 fee pass-through. It also frames as an open debate whether Ethereum should impose a "tax" on L2s or rely on market-driven fee discovery.

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L2s are extractive, but L1 is increasing network effects and brand value
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