TLDR: 1. Ethereum massively overbuilt blockspace while app demand barely grew. 2. Fees are heading toward zero. 3. Either subsidize usage to drive real app demand, or constrain supply and accept ETH becoming far less valuable. 4. The industry should've shifted investment from scaling to applicat
Ethereum has overbuilt blockspace with stagnant app demand, leading fees toward zero and threatening ETH's value.
First Polyana post in a while, discusses the tension between Supply and Demand for blockspace and L1 value capture I thought about this tension a lot when writing about why I sold my ETH. Eventually, at the endgame, for max-value ETH, fees won't/cant't matter. 'ETH is money' implies a market cap
TLDR: 1. Ethereum massively overbuilt blockspace while app demand barely grew. 2. Fees are heading toward zero. 3. Either subsidize usage to drive real app demand, or constrain supply and accept ETH becoming far less valuable. 4. The industry should've shifted investment from scaling to applicat
First Polyana post in a while, discusses the tension between Supply and Demand for blockspace and L1 value capture I thought about this tension a lot when writing about why I sold my ETH. Eventually, at the endgame, for max-value ETH, fees won't/cant't matter. 'ETH is money' implies a market cap
Selling blockspace is a increasingly commoditized race-to-zero market, to have a real pricing power, Ethereum needs to offer something more valuable worth paying more for than just settlement and DA Imo, it would be very bearish if Ethereum just started jacking up the rent on L2’s because they woul